GST on interest on loan, Goods and Services Tax - GST

[Kaustubh Karandikar]

PQR (Mexico) is a Subsidy of XYZ (India). Loan had been given in US$ by XYZ (India) to PQR (Mexico) and the principal amount along with interest is paid back to XYZ (India) again in US $ and the same is deposited in the Indian bank having foreign currency account. Is XYZ required to pay GST on the interest amount received from PQR?

Posts / Replies

[Narendra Nimmala]

Services by way of extending loans is exempt vide entry 27 of Notification No. 12/2017- Central Tax (Rate). XYZ is not liable to pay GST