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)
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.