Fixed Deposit interst income - GST Applicable

Dear Sir.

 Greetings.  I am Muthaiah Jeyachandran From Tamilnadu.  I have a query. My firm have many Fixed Deposits with Bank. Every year bank pays our Firm Interest For Fixed Deposit.  The FD Interest Calculated as a Indirect Income.  in this, While Auditing GSTR-9, 9C For Fy : 2020-21, The Audit Executive Says,  The Fixed Deposit Interest is also GST Applicable.   If its Correcet how do for Last Year Interest GST in Current Year.

Please any one clear the issue.

Thanking You,

Muthaiah Jeyachandran.

 

Replies (4)
Quick Summary
A user is seeking clarification on whether Goods and Services Tax (GST) is applicable to interest earned on Fixed Deposits (FDs) held by their firm. During an audit for FY 2020-21, the auditor suggested that FD interest is subject to GST. The user is asking for guidance on this matter, particularly how to account for past interest if GST is indeed applicable. Another user has pointed out that, as per Notification No. 12/2017, interest on deposits is generally exempted from GST.

No gst applicable on fd
As per Notification No.12/2017 dated 28.06.2017 deposits, loans or advances in so far as the consideration is represented by way of interest or discount is exempted.

Dear Vikas Saini,

 

   Thanks a Lot for your kind Reply.

VIKAS SAINI

Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=579183&offset=0Vikas

Dear Mr. Pratic Datta,

  Thanks for your resposne. Just now downloaded the Notification. Thanks

 

 

Pratick Datta Pratick Datta

Read more at: https://www.caclubindia.com/forum/fixed-deposit-interst-income-gst-applicable-579183.asp?offset=1Pra

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