TaxTMI 
TaxTMI 
Dear Experts ,
Pl clarify GST applicability on gold loan interest
Thanks in advance
GST ON GOLD LOAN INTEREST
09 Mar 2018 
4 Replies 
13516 Views Asked by
GST exemption on loan interest: interest on gold loans is not taxable, but ITC reversal or partial ITC rules apply.
Interest on gold loans is treated as interest on loans which is an exempted service attracting a nil GST rate; loans include gold loans and therefore interest on such loans is not subject to GST. Because this interest income is an exempt supply, the provider is required to reverse input tax credit attributable to exempt supplies unless the supplier has availed the alternative partial ITC mechanism (the 50% scheme under Rule 38). (AI Summary)
Interest on gold loans is treated as interest on loans which is an exempted service attracting a nil GST rate; loans include gold loans and therefore interest on such loans is not subject to GST. Because this interest income is an exempt supply, the provider is required to reverse input tax credit attributable to exempt supplies unless the supplier has availed the alternative partial ITC mechanism (the 50% scheme under Rule 38). (AI Summary)