GST treatment of related-party loans clarified: interest-only lending is exempt, while loan-processing fees remain taxable. Taxability of loans between related persons or between an overseas affiliate and its Indian affiliate is clarified under GST. A loan granted between related persons in the course or furtherance of business is a supply under Schedule I, but where the only consideration is interest or discount, the transaction of extending deposits, loans or advances is exempt from GST. Where no processing fee, administrative charge, service fee or loan-granting charge is levied over and above interest or discount, the lending arrangement is not to be treated as a supply of processing, facilitating or administering the loan.