Gst implication on hire purchase transactions

Any transfer of title in goods under an agreement which stipulates that property in goods will pass at a future date upon payment of full consideration as agreed, is a supply of goods. Financial lease/Hire purchase transaction would amount to supply of goods under the GST.

Refer: gst-on-leasing-and-hire-purchase-transactions

Yes

1.    In terms of entry 1(c) of the Schedule II to the Act, transfer of goods under hire purchase agreement would be treated as supply of goods and all components of supply under the agreement would be liable for GST whether or not the credit component (interest) is separately disclosed.

2.    However, as per entry No.27 of the exemption Notification No.12/2017-CGST (Rate) dated 28.06.2017, GST is not required to be paid on interest component provided it is separately identified and disclosed in the invoice as it is a financial charge. Otherwise, GST has to be charged on the entire amount payable under the contract.

Thanks a lot 
That means if interest is disclosed separately then it shall not be levied