Gst applicability on income of transfer of loan portfolio

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Whether the gst applicable on income of tranfer of loan portfolio to third party??

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Quick Summary
This discussion explores whether Goods and Services Tax (GST) is applicable to income generated from transferring a loan portfolio to a third party. While the transfer of loan receivables could be considered a supply of services under GST, its applicability depends on specific classifications and potential exemptions for financial services. It's important to consult the latest GST guidelines and Indian tax authorities for definitive guidance, as the transfer of loans may not always be construed as a 'service' under the GST Act.

Transfer of loan portfolio to a third party, GST applicability depends on whether this transfer is considered a supply of services. 

Typically, the transfer of loan portfolio involves assignment of receivables or securitization. As per GST laws in India:

The assignment of debt (like transferring loan receivables) could be considered a upply of services. 

GST might be applicable if the transfer is treated as a supply of servies under GST laws. 

However, specific GST exemptions or treatments might apply depending on the nature of the transaction, like if it is related to financial services. Financial services often have specific GST treatments. 

For precise GST applicability on the income from transferring a loan portfolio to a third party, you would need to check:

If the transaction qualifies as a supply of services.

If any exemptions apply under GST for financial services or transactions. 

Please follow latest GST guidelines from the GST Council or Indian tax authorities through their website.

The transfer of loan is not construed as service within the word "service" as per gst act.

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