GST - FAQ

It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.

GST will be applicable from 1st July 2017

The tax would accrue to the taxing authority which has jurisdiction over the place of consumption which is also termed as place of supply.

It would be a dual GST with the Centre and States simultaneously levying it on a common tax base. The GST to be levied by the Centre on intra-State supply of goods and / or services would be called the Central GST (CGST) and that to be levied by the States would be called the State GST (SGST). Similarly Integrated GST (IGST) will be levied and administered by Centre on every inter-state supply of goods and services.

Interest paid by a customer towards his/her loan will continue to remain exempt under GST. However, various charges levied like processing fees, cheque bouncing charges etc. will attract GST.

These charges currently attract Service Tax. Once GST is applicable, it will replace Service Tax.

The GST rate notified for the aforesaid charges is 18%.

On satisfying conditions prescribed by the GST legislation, Input Tax credit can be claimed subsequently for GST charged to you.

Yes, you need to be registered under GST to claim input tax credit.

You need to first register yourself under GST and obtain a provisional ID (GST registration number), if you have operations in more than one state then you may seek registration for each such state. Please note that GST registration is state wise.

You need to provide your GST registration number to us (provisional ID), this is of 15 characters – the first 2 represent the state code, characters 3 to 12 represent your PAN, character 13 represents the entity number, 14th character is ‘Z’ by default and 15th character is a check sum digit. This provisional ID number is mentioned on the acknowledgement that you would have generated on the GSTN portal post enrolment.

Invoice for charges, on which GST has been levied, will be issued in the name of the primary borrower as per loan account.

Please provide the GST registration number applicable to the state mentioned in your mailing address provided to us.