The Central Board of lndirect Taxes & Customs (CBIC) on June 26, 2024, issued a Clarification regarding the taxability of the transaction of providing a loan by an overseas affiliate to its Indian affiliate or by a person to a related person.
The following has been stated:
• It has stated that representations have been received from trade and industry seeking clarity on whether there is any supply involved in the transaction of granting a loan by a person to a related person or by an overseas affiliate to its Indian entity, where the consideration being paid is only by way of interest or discount, and whether any GST is applicable on the same.
• It has stated that in order to ensure uniformity in the implementation of the provisions of the law across field formations, the Board hereby clarifies the following as specified in the Table.
Kindly find the Table provided with this document attached to the document.
[Notification No 218/12/2024-GST]
