Why banks are charging GST on interest on Credit Card Loan Interest. While GST on Interest is not chargeable.
Harcharan Singh Shangari Asked question October 12, 2020
In terms of Sl. No. 27 of notification No. 12/2017- Central Tax (Rate) dated the 28.06.2017 “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)”is exempted. Thus GST on interest on credit card is applicable. There was similar poistion under service tax regime also.
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Frah Saeed Changed status to publish October 12, 2020