GST on loan interest: Is it applicable for personal loans?

GST is NOT charged on the interest component of any loan, whether from a bank or NBFC. The interest earned by the lender is their income and subject to income tax on their end. The GST on financial services applies to fees and charges like processing fees, prepayment charges, and loan administration charges — not interest. If your NBFC is charging GST on interest, it is incorrect.

GST is NOT charged on the interest component of any loan, whether from a bank or NBFC. The interest earned by the lender is their income and subject to income tax on their end. The GST on financial services applies to fees and charges like processing fees, prepayment charges, and loan administration charges — not interest. If your NBFC is charging GST on interest, it is incorrect.

GST is NOT charged on the interest component of any loan, whether from a bank or NBFC. The interest earned by the lender is their income and subject to income tax on their end. The GST on financial services applies to fees and charges like processing fees, prepayment charges, and loan administration charges — not interest. If your NBFC is charging GST on interest, it is incorrect.

Report this to the GST helpline 1800-889-0001 or file a complaint on the GST portal. The lender may be incorrectly classifying a component of your loan as a service fee. Request a detailed breakdown of charges from the NBFC.

Report this to the GST helpline 1800-889-0001 or file a complaint on the GST portal. The lender may be incorrectly classifying a component of your loan as a service fee. Request a detailed breakdown of charges from the NBFC.

Report this to the GST helpline 1800-889-0001 or file a complaint on the GST portal. The lender may be incorrectly classifying a component of your loan as a service fee. Request a detailed breakdown of charges from the NBFC.