- Home
- Industry wise issues
- Banking and Financial Sector
- Whether GST is applicable on foreclosure charges on premature termination of loans ?
Whether GST is applicable on foreclosure charges on premature termination of loans ?
TRT-2026-944
Issue Favourable to Tax Payer ?:- yes
Held - The issue is whether the Foreclosure charges collected by the banks and non-banking financial companies on premature termination of loas is subject to levy of service tax under “Banking and Other Financial Services” as defined under Section 65 (12) of the Finance Act, 1994. The Larger Bench in the case of Repco India Ltd. (supra) has considered the issue and held that such charges are not liable to service tax.
Following the d.....
- Whether courses offered by an institute as per a specified curriculum is exempted from GST ?
- Whether GST is applicable to grants / donations / aids received by Charitable Institute?
- Whether the interest component of EMI of loan advanced by the Bank is exempt from GST ?
- Whether GST is applicable on foreclosure charges on premature termination of loans ?
- Whether leasing of land for construction of property is leviable to GST ?
- Whether supplies ancillary to the transmission and distribution of electricity are exempt ?
- Whether services provided for conducting exams are eligible for GST exemption?
- Whether hostel accommodation provided by Trusts is exempted from GST ?
- Whether cheque bouncing / dishonoring charges collected from defaulting customers is leviable to GST ?
- Whether sale of land after undertaking development activities/ amenities is taxable supply under GST ?
