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).
Credit card has always remained an exception due to exorbitant rate of interest they charge.. Anyways if GST is charged by bank may be on processing fee of loan or hire purchase, ITC will not be admissible u/s 17(5)(a) as such fee / installment on which GST is paid is in respect of passenger motor vehicle, except where such motor vehicle is used for specified purpose.
It is worth noting that even the insurance, servicing, R&M in relation to such vehicle is blocked for ITC which clearly shows the intent of legislature.
Team Clearmytax.in