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
Yes, in case GSTIN of both the units are different. Its treated as supply.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160579 Points)
Replied 02 May 2019
Yes, in case GSTIN of both the units are different. Its treated as supply.
Pankaj Rawat
(GST Practitioner)
(55032 Points)
Replied 02 May 2019
Vramamurthy
(Coimbatore)
(27 Points)
Replied 02 May 2019
Nishant shah
(AUDIT ASSISTANT)
(302 Points)
Replied 03 May 2019
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
P Murahari Kanuparthi
(Manager - Commercial)
(41 Points)
Replied 03 May 2019
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.
mayur
(Commercial Analyst)
(33 Points)
Replied 04 May 2019
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