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Applicability of GST on interest

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(Querist)
08 May 2017 The definition of services under CGST Act says that services includes activities relating to the use of money for which seperate consideration is charged. Hence can it be concluded that Interest on Loan will attract GST ? as Interest is charged for use of money. Further. will Bank interest also attract GST ?
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Sharwan Baluni

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Sharwan Baluni (Expert)
09 May 2017 Interest charge on giving loan is taxable under GST just like it was taxable under service tax. Activity related to use of money is activity of money exchanger where they charge extra margin for converting the money. GST is applicable on extra margin which is added by exchanger.
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Ronil

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Ronil (Querist)
09 May 2017 Ok... Thank you sir...!!
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