Hi,
Pls Help , we have two companies one is NBFC and second is Pvt Ltd , NBFC has gives short term loan to Pvt ltd company Rs.5 Cr @ 14% PA , so can NBFC charge GST on STL interest if yes then can Pvt ltd company avail that GST input credit .pls provide notification also.
Thanks in advance .
GST is not applicabel on Interest. So there is no point of raising GST invoice and subsequently input to the party.
there is any notification for the same.
thanks !!
Its specifically covered under Services exempted by GST (entry 8).
Services by way of— (i) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services); (ii) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange or amongst banks and such dealers.
No Notofications.
CAclubindia
