GST ON GOLD LOAN INTEREST

[raja raja]

Dear Experts ,

Pl clarify GST applicability on gold loan interest

Thanks in advance

AI Summary

Gold Loan Interest Exempt from GST per Notification 12/2017; ITC Reversal Required Unless Rule 38's 50% Scheme Opted. A query was raised regarding the applicability of GST on interest from gold loans. Experts clarified that, according to Notification No. 12/2017-Central Tax (Rate), services involving loans or advances, including gold loans, are exempt from GST if the consideration is represented by interest or discount. Therefore, no GST applies to gold loan interest. However, it was noted that this exemption requires the reversal of Input Tax Credit (ITC) unless the 50% scheme under Rule 38 has been opted for.