GST on Written off Loan Account of Banks.

suraj vaishya (27 Points)

06 March 2020  
As per Notification No. 9/2017 from GST department, Interest on loan received by the banks is exempt from GST. So kindly assist me in below case:
Mr. X had taken loan from bank. Mr.X had defaulted the payment. Bank as per IRAC norms classified the loan account as Substandard, later classified it under the loss assets. And thereafter bank had written off the loan account from books with appropriate approvals. Now no loans was appearing in the books of bank as receivable.
But after the year, Mr X had paid the amount to bank, where bank recognised it as other income.
Now in this case, as GST was not leviable on interest on loan. So whether such receipt/recovery after write off of loan account will be covered under GST being other income or not.