GST ON GOLD LOAN INTEREST, Goods and Services Tax - GST

[raja raja]

Dear Experts ,

Pl clarify GST applicability on gold loan interest

Thanks in advance

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

Vide Sl. No.27 of Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017 as amended rate of gst on "Services by way of 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 'Nil'. 'Loans include gold loan also.

[KASTURI SETHI]

Gold loan is one of the types of loan.

[Ganeshan Kalyani]

Accordingly, no GST is applicable on interest on loan.

[Gunjan Shah]

Since it will be exempted service under GST. You will be required to reverse ITC. Unless already opted for 50% scheme under Rule 38.