TaxTMI 
TaxTMI 
PQR (Mexico) is a Subsidy of XYZ (India). Loan had been given in US$ by XYZ (India) to PQR (Mexico) and the principal amount along with interest is paid back to XYZ (India) again in US $ and the same is deposited in the Indian bank having foreign currency account. Is XYZ required to pay GST on the interest amount received from PQR?
GST on interest on loan
16 Jul 2021 
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GST exemption for loan services: interest received on a corporate loan repayment is not taxable under the loan-services exemption.
Services by way of extending loans are exempt from GST; interest received on a repaid loan deposited in a foreign currency account is not subject to GST where it falls within the loan-extension exemption, and the lender is not required to pay GST on those interest receipts. (AI Summary)
Services by way of extending loans are exempt from GST; interest received on a repaid loan deposited in a foreign currency account is not subject to GST where it falls within the loan-extension exemption, and the lender is not required to pay GST on those interest receipts. (AI Summary)
