SAC FOR INTEREST ON LOANS

[S.C. WADHWA]

What is SAC for interest on loans exmpted under GST.

AI Summary

Interest on Loans Exempt from GST Falls Under SAC 9971 Per Notification No. 12/2017-Central Tax A query was raised regarding the Service Accounting Code (SAC) for interest on loans exempted under GST. The response clarified that the SAC for services involving deposits, loans, or advances, where the consideration is represented by interest or discount (excluding credit card services), falls under heading 9971. This is supported by entry no. 27 of the Mega Exemption Notification No. 12/2017-Central Tax rate dated 28.06.2017. Another participant endorsed this view, agreeing with the expert's explanation.