GST charged on interest portion of EMI

[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.

AI Summary

GST on Credit Card Loan Interest: Clarity Sought on Applicability for Timely Payments Under Current Regulations A user raised a query about being charged GST on the interest portion of an EMI for a personal loan taken via a credit card from a bank. The user questioned the applicability of GST on interest if payments are made on time. One respondent clarified that personal loan EMIs should not attract GST, as they were previously exempt from service tax. Another respondent noted that GST might apply to interest on credit card services, suggesting the bank's charges could be justified under current GST regulations.