if we give loan to our group company and charge Interest
does such interest is subject to gst?
if yes pls share notification or clarification or case study
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GST on interest
Replies (8)
Yes, in case GSTIN of both the units are different. Its treated as supply.
Could you plz share sec or notification
Its Exempted as per Entry no 27 , of Notification 12/2017 CT (r)
sec 7(1)(a) defines the supply ......as per the sec supply of goods and or services done for any consideration treated as supply .......pls refer sec 7 ....for further reference
so as per 7 (1)(a) gst is applicable
GST is not applicable by virtue of of Exemption list which says that lending of money is a supply of services, but an exempt service in terms of Item 8 of Exemption list
If the transaction is a loan transaction, there is no question of GST on the recovery of principal lent, as the tax can only be on the consideration, and not for principal recovery. All earnings and charges other than interest or discount will be chargeable to GST. Lending of money is a supply of services, but an exempt service in terms of Item 8 of Exemption list.
Please refer M/s DELHI CHIT FUND ASSOCIATION VS UNION OF INDIA & ANR. W.P. (C) 4512/2012 dated 23-04-2013.
Third Party Trade Sales/Purchase Bill Discounting/Refinance.
Query:
* GST HSN Code.
* Rate Of SGST
Guj/Maharashtra/Karnataka/
Rajesthan.
* Rate Of CGST.
* GST Registration Procedures For Individuals.
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