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GST on interest.. (loans and advance)
Sir, our firm given loan to some other firm transfer through firm account and the amount return after 10 days Or 20 days with interest. Can i pay GST on interest portion.pls explain
Replies (9)
No, interest on Loans and Advances is Exempt from GST. So, you are not required to pay any GST on interest income..
Interest on loan is exempted as per act
Sir are you sure, I think it is exempted only financial institutions and nbfc
No need to pay GST, the same was exempted in GST via notification 12/2017 CT(R) dt. 28-06-2017
In the Entry 27 of the notification it was given that:
Services by way of—
(a) 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);
(b) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange or amongst banks and such dealers.
In the entry no where specified that it applicable only to the the financial institutions. So, there is no GST on such income.
Interest on Loans and Advances is Exempt from GST for all including financial institutions, bank, all other business concern and persons.
As per Mega Exemption Notification No. 12/2017 - Central Tax ( Rate ), dated 28th June 2017 read with Section 11 of the CGST Act 2017, Interest on Loans and Advances is EXEMPTED from GST.
Yes it's Exempted by vide Notification 12/2017 CT (r)
Thank you to all. 🤝🤝🙏🙏
Most welcome.........
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