Whether Interest on Income Tax Refund is Taxable Under GST?

taxguru.in/goods-and-service-tax/whether-interest-on-income-tax-refund-is-taxable-under-gst.html

aashish

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

Name:AMIT SHARMA

Qualification: Student- Others

Company: N/A