Follow Us :

As we all know Interest receipts from loans, advances and deposits is covered under exemption list in GST.

The text of exemption list is mentioned below: Exemption Notification 12/2017- Central Tax (Rate)

SI. No. HSN/SAC Description of services Rate (%)
27. 9971 Services by way of-

(a) 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)

NIL

If we consider such interest receipts on income tax refund arising because of excess advance tax paid or TDS deducted under income tax, then these may be considered as advances where consideration is represented by interest.. However, there is no such definition of advances been provided under GST law. Neither this can be considered as loans nor deposits.

If anyone is having a better view, please do share.

Thanks

Author Bio


Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

2 Comments

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Post by Date
April 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930