TaxTMI 
TaxTMI 
XYZ(Proprietor) received Interest free loan from PQR (HUF). Both XYZ and PQR are related. Will it have any GST implications? Loan being given without charging any interest and XYZ and PQR being related, will it not amount to service provided by PQR to XYZ and for related person even without consideration, GST is required to be paid and in that case, whether PQR liable to pay GST?
Related Party Trnasactions
25 Feb 2019 
1 Reply 
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Related party interest free loan treated as supply but exempt from GST, with no reversal of input tax credit.
An interest free loan between related persons is treated as a supply under Schedule I but is classified as an exempt supply under the stated GST exemption notification; accordingly, GST is not attracted and there is no requirement to reverse common input tax credit under the input tax credit reversal rules in light of the explanation provided. (AI Summary)
An interest free loan between related persons is treated as a supply under Schedule I but is classified as an exempt supply under the stated GST exemption notification; accordingly, GST is not attracted and there is no requirement to reverse common input tax credit under the input tax credit reversal rules in light of the explanation provided. (AI Summary)