📣 GST Update for foreign firms providing loans to their Indian subsidiaries! 🌐 The Central Board of Indirect Taxes and Customs (CBIC) has clarified that GST will not be imposed on such intra-loan transactions, subject to certain conditions. 🏦💼

However, any additional fees, commissions, or related payments over and above the interest charged on these loans will attract GST at 18%. 💰📈

This move is set to end the uncertainties surrounding the taxation of loans/credit among group companies, an issue that has been a major concern for foreign entities. The matter came to light during GST audits, leading to tax notices being served. 📑🔍

Regarding taxation, the issue involved valuing the services of foreign affiliates when the Indian recipient can claim full Input Tax Credit (ITC).

The CBIC has stated that the open market value of such services can be the invoiced amount by the Indian company, assuming full ITC is available. If no invoice exists, the service value can be considered nil. 📄✅ Stay tuned for more updates! 📊👍