SAC FOR INTEREST ON LOANS

[S.C. WADHWA]

What is SAC for interest on loans exmpted under GST.

[Nitika Aggarwal]

Dear Sir,

SAC for Services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services); is covered under heading 9971.

In order to substantiate the same, reliance shall be placed on entry no 27 of Mega Exemption Notification No. 12/2017-Central Tax rate dated 28.06.2017.

Regards

Nitika Aggarwal

9953157961

[YAGAY and SUN]

We duly endorse the view of the expert.

AI Summary

SAC for interest on loans recognized as services under SAC 9971 and exempt under GST notification.
Services by way of extending deposits, loans or advances where the consideration is represented by interest or discount (other than credit card interest) are classified under SAC 9971 and are treated as exempt under entry 27 of the applicable mega exemption notification.