TaxTMI 
TaxTMI 
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.
GST charged on interest portion of EMI
27 Nov 2017 
2 Replies 
5238 Views Asked by
GST on loan interest may apply where consideration is interest on loans, affecting the EMI interest component.
Whether GST applies to the interest component of personal loan EMIs depends on characterisation: one position relies on prior non-taxation under service tax to argue exemption, while another points to GST coverage of services extending loans where consideration is interest or discount, excluding certain credit card interest, thus treating loan interest as potentially taxable consideration under GST. (AI Summary)
Whether GST applies to the interest component of personal loan EMIs depends on characterisation: one position relies on prior non-taxation under service tax to argue exemption, while another points to GST coverage of services extending loans where consideration is interest or discount, excluding certain credit card interest, thus treating loan interest as potentially taxable consideration under GST. (AI Summary)