Higher interest rate by NBFCs in co-lending with banks not subject to GST: FIDC urges CBIC for clarification

Finance Industry Development Council (FIDC), a representative body for NBFCs, on Thursday urged the Central Board of Indirect Taxes and Customs (CBIC) to clarify that the excess rate of interest retained by an NBFC in co-lending model with banks is not a consideration for any ‘service’ and hence, is not subject to Goods and Services Tax (GST).  A letter to CBIC Chairman Sanjay Kum…