Sir
I think the ITC on the GST on interest paid on car loan taken from bank or other finance companies for the purpose of business is available to the assessee and it will not come under blocked credit under section 17 (5).
Interest on loan or advance is an exempt supply under GST law and GST is not applicable thereon and thus question of any input tax credit does not arise.
Team Clearmytax.in
I think the person who has taken a loan from the financing co has to pay GST on the amount of interest or hire portion. I was requesting for clarification on such gst portion on the hands of recepient. Or else in case of delay in payment of instalment they charge penalty for the extra payment for which gst is applicable. In case of credit card also for the delayed payment of amount interest plus GST is payable. Please clarify
Sir
But in case of instalment or hire purchase scheme the GST is applicable for the interest or hire portion which I have requested to clarify in the case of the person who has taken loan under the scheme