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whether gst apply or not

Veeresh Babu (47 Points)

01 January 2019

whether gst apply on money given for interest (and it is the business of individual giving money for interest)

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4 Replies

Jatin (Accountant) (3479 Points)
Replied 01 January 2019

GST is not applicable in your case

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Ravi SADhiyan (Practice) (4510 Points)
Replied 01 January 2019

GST not levied on Interest other than Late payment interest paid

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 01 January 2019

Its exempted by the Notification 12/2017 CT (r) .

GST is levaiable on the amount of interest only if interest is paid on account of default in payment (refer section 15(2))

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CA Roopa Nayak (Specialized in Indirect Taxes) (6511 Points)
Replied 06 January 2019

GST is exempted on interest on loans/advances

Extract as under-12/2017-CT(rate)

Services by way of—
(a) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services);

“interest” means interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) but does not include any service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised