Related-party loan taxation clarified: interest-only lending is exempt, while processing and administration charges remain taxable. Loan or credit extended by a related person, including an overseas affiliate to its Indian affiliate, is treated as a supply under the GST deeming provisions applicable to transactions between related persons when made in the course or furtherance of business. However, where the consideration for such lending is confined to interest or discount, the service of extending deposits, loans or advances falls within the specific GST exemption for interest or discount-based lending and is not taxable on that account. Charges such as processing fee, administrative charges, service fee or loan-granting charges, when levied over and above interest or discount, are taxable as supply of services.