2 Points
Joined June 2024
As per Sl. No.27 of Notification No. 12/2017-CT(Rate)dated 28.06.2017 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) is exempt under GST. As loan against jewellery is also a loan so interest on such loan is exempt from GST.
Therefore on Interest income no GST but on sale of pledged items GST is leaviable.