Gst on emi transaction

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Varinder Singh (Querist)
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30 November 2018 I had purchased a LED on EMI of 9 months on my credit card(zero interest and zero processing charges). The bank is charging me gst on interest part of the EMI. I have read that gst is not applicable on interest. Kindly clarify

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 December 2018 GST not applicable on interest. But gst applicable on any charges made by credit card including interest as per gst provisions.

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Varinder Singh

Varinder Singh (Querist)
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11 December 2018 Thanks for the reply Sir. Can u elaborate on "gst applicable on any charges made by credit card including interest as per gst provisions"
Do you mean any penality on interest, penal Interest charges or pure interest.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 December 2018 GST applicable on all charges including interest, penal interest and penalty.

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Varinder Singh

Varinder Singh (Querist)
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16 December 2018 Thanks a ton for the info

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