The Basics of GST on Loans
Taking out loans is a fantastic method to extend your services and boost your business. However, a few things have changed since the introduction of GST, which can be confusing. In this blog, we will try to understand how GST has impacted different loans like small scale business loans or personal loans for doctors . How does the GST affect loans, and what is it? The Goods and Services Tax (GST) is an indirect tax that has mostly replaced other taxes including the VAT and service tax. The tax, as its name implies, is levied on any kind of item or service, including financial services like loans. The GST rate was 15% in the past; as of right now, it is 18%. GST has minimal impact on your personal loans or business operations. Any company may charge a processing fee of no more than 2% of the total. The GST itself will be 18% on this 2% in addition. If you obtain a personal loan from a reputable lender like Peerless Finance , tax is paid on the processing fees that are taken from th