GST on bike loan

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7 Points Joined July 2017
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 ??
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On 29 July 2017 at 17:26 Report
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1518 Points Joined March 2017
GST is applicable on bank service charge not on interest
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On 29 July 2017 at 17:33
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1518 Points Joined March 2017
GST is applicable on bank service charge not on interest
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On 29 July 2017 at 17:33
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Proprietor
4869 Points Joined January 2010
yes agreed
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On 29 July 2017 at 18:11
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jr accountant
708 Points Joined April 2012
like processing fees or file fees
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On 29 July 2017 at 18:11
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Student CA Final
78 Points Joined January 2014
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.
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On 29 July 2017 at 19:33
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Student CA Final
78 Points Joined January 2014
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.
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On 29 July 2017 at 19:37
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1518 Points Joined March 2017
@ Mr gauraksh GST is applicable on goods and service then how GST applicable on interest (income or expenditure )
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On 29 July 2017 at 20:12
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7 Points Joined July 2017
exactly @ Mr Sandeep I'm confused over this point !
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On 30 July 2017 at 01:03
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388 Points Joined February 2016
Interest by way of loans, advances, deposit has been exempted via Notification 12 of Central atTaz (Rate)
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On 30 July 2017 at 04:59
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Student CA Final
78 Points Joined January 2014
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.
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On 30 July 2017 at 14:58
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article assistant
123 Points Joined March 2016
hahaha.. bhai.. government revenue huge ho jaye int pr gst lg jaye to
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On 30 July 2017 at 15:20
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7 Points Joined July 2017
then what the hell Bajaj finance texted me about ?
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On 30 July 2017 at 17:35
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Student CA Final
78 Points Joined January 2014
Bajaj is right on his terms , he didnt say u interest on loan , he said gst levied on loand default
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On 30 July 2017 at 17:38
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Job
1865 Points Joined April 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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On 30 July 2017 at 17:45

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