GST charged on interest portion of EMI, Goods and Services Tax - GST

[HIMANSHU Gupta]

I HV availed personal loan on credit card through Citi bank and they are charging GST on interest portion of EMI. Although GST is applicable on Bank charges but hw come is it applicable on intt portion of EMI if it is being paid on due date. Kindly guide and is there any remedy which I can take if any injustice or wrong being done on the part of bank.

Posts / Replies

[ANITA BHADRA]

personal loans did not attract service tax earlier and should not attract GST now. Personal loan EMI shouldll remain unchanged and unaffected by GST.

Even according to SBI official,home loan, auto loan, and personal loan EMIs will not go up as service tax is not levied on them, hence, they will not be taxable under GST.

Regards

[pradeep kumar]

Mam but ,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);so gst attaract in this case