Today Bajaj finance texted me this message > "Dear Customer, Govt of India has implemented Goods & Services Tax from 1st Jul, 2017. The effective GST rate will be 18% on loan default charges/charges & fees."
Are they eligible for 18% interest ??
17 Replies
Sandeep Upadhyay
(1518 Points)
Replied 29 July 2017
GST is applicable on bank service charge not on interest
Sandeep Upadhyay
(1518 Points)
Replied 29 July 2017
GST is applicable on bank service charge not on interest
sunil kumar sharma
(jr accountant)
(708 Points)
Replied 29 July 2017
like processing fees or file fees
Gauraksh Malik
(Student CA Final )
(78 Points)
Replied 29 July 2017
The bank is right
bcse defination of consideration 2(31) includes payment made in the form of tolernace or forbearance charges
so if bank is charging the loan default charges then it is a consideration on the part of tolerance charges
and therby
GST will be levied by the impact of section 7(1)(a) of cgst act.
bcse defination of consideration 2(31) includes payment made in the form of tolernace or forbearance charges
so if bank is charging the loan default charges then it is a consideration on the part of tolerance charges
and therby
GST will be levied by the impact of section 7(1)(a) of cgst act.
Gauraksh Malik
(Student CA Final )
(78 Points)
Replied 29 July 2017
and there is no such type of Intrest to be exempt in GST under schedule III or any notification by govt.
so gst will be levied till any amendments come.
so gst will be levied till any amendments come.
Sandeep Upadhyay
(1518 Points)
Replied 29 July 2017
@ Mr gauraksh
GST is applicable on goods and service then how GST applicable on interest (income or expenditure )
Ahmed Ali
(388 Points)
Replied 30 July 2017
Interest by way of loans, advances, deposit has been exempted via Notification 12 of Central atTaz (Rate)
Gauraksh Malik
(Student CA Final )
(78 Points)
Replied 30 July 2017
no no
the interest i am talking about is interest other than interest on loan deposit or adavance.
The query is about loan default charges / interest, not interest on loan given
sorry for the such confusion.
the interest i am talking about is interest other than interest on loan deposit or adavance.
The query is about loan default charges / interest, not interest on loan given
sorry for the such confusion.
mohammad
(article assistant)
(123 Points)
Replied 30 July 2017
hahaha.. bhai.. government revenue huge ho jaye int pr gst lg jaye to
Gauraksh Malik
(Student CA Final )
(78 Points)
Replied 30 July 2017
Bajaj is right on his terms , he didnt say u interest on loan , he said gst levied on loand default
Poltu Ghosh
(Job)
(1865 Points)
Replied 30 July 2017
Dear Anirban,
The message that you have received about GST on loan default charges and not on interst on loan that you are paying by way of EMI. In case you make any delay in making the payment on EMI Bajaj Finance will levy some charges on you because of late payment of EMI. On this charges for late payment of EMI GST will be payable. In case you do not make any default in loan/EMI payment you have no case to worry.
This message was sent for information purpose only.
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