{"id":420,"date":"2020-08-11T06:48:51","date_gmt":"2020-08-11T06:48:51","guid":{"rendered":"https:\/\/www.govreports.co.in\/blog\/?p=420"},"modified":"2020-08-11T06:49:28","modified_gmt":"2020-08-11T06:49:28","slug":"gst-on-loans-and-advances","status":"publish","type":"post","link":"https:\/\/www.govreports.co.in\/blog\/2020\/08\/11\/gst-on-loans-and-advances\/","title":{"rendered":"GST on Loans and Advances"},"content":{"rendered":"\n<p>Earlier, the service tax is levied on\nloans and advances. Now GST replaces the Service tax and the GST is also\napplicable for Loans and Advances. The GST rate applicable is 18% on processing\ncharges and any other charges.&nbsp; But it is\nnot applicable for repayment of principal and interest.<\/p>\n\n\n\n<!--more Continue Reading-->\n\n\n\n<p>The impact of GST loans apply to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Personal loan<\/li><li>Home loan<\/li><li>Car loan<\/li><\/ul>\n\n\n\n<p>GST on car loan<\/p>\n\n\n\n<p>The GST will be applicable on all\npersonal use vehicles at the rate of 28%. There is no differentiation between\nthe petrol and diesel powered vehicle. Apart from this, a \u00e2\u20ac\u0153Composition Cess\u00e2\u20ac\u009d is\nalso levied on luxury cars.&nbsp; The rates\nmay increase from 29% to 50%. However the vehicles that operate on cleaner\ntechnologies and the electric vehicles attracts lower rate of taxes.<\/p>\n\n\n\n<p>GST on Gold<\/p>\n\n\n\n<p>Ornaments like Gold jewelry also\nattracts GST. The GST rate applicable is 3% on gold jewels and 5% on the jewelry\nmaking charges. This labour charge is on top on certain cases. So, the Jeweler\ncan claim the making charges as Input tax credit while calculating the final\nbill to be paid by the purchaser with 3% GST.<\/p>\n\n\n\n<p>GST on Real estate<\/p>\n\n\n\n<p>GST on Real estate is applicable only\nfor a property that is under development. The GST rate applicable is 12% till\n31<sup>st<\/sup> March 2019.&nbsp; But from 1st April, the GST rates on residential real estate has\nbeen altered to 5% for non-affordable housing properties while for affordable housing\nproperties the tax rate levied is 1%. This is for both commercial and\nresidential properties. In addition to this,\nvarious building materials used for the construction of houses\/flats fall under\nGST are taxable from 5% (sand, marble rubble, etc.) to 28% (cement, etc.).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Earlier, the service tax is levied on loans and advances. Now GST replaces the Service tax and the GST is also applicable for Loans and Advances. The GST rate applicable is 18% on processing charges and any other charges.&nbsp; But it is not applicable for repayment of principal and interest.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-420","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"_links":{"self":[{"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/posts\/420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/comments?post=420"}],"version-history":[{"count":2,"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/posts\/420\/revisions"}],"predecessor-version":[{"id":422,"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/posts\/420\/revisions\/422"}],"wp:attachment":[{"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/media?parent=420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/categories?post=420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/tags?post=420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}