Since coming into effect in 2017, the Goods and Services Tax also known as GST has been a common topic of conversation among individuals and businesses alike. Due to its far-reaching effects, the GST is a point of interest for people all over the country. The slightest change in the GST rates as well as their implementation affect both consumers as well those who provide goods and services to them.
With the 38th GST Council Meet happening this month, the topic of GST revision is back in the news again. This has led consumers to wonder how the changing GST rates will be affecting their plans for the future. Particularly, if individuals were looking to avail a loan to meet their financial needs, it is natural for them to wonder if they will have to pay GST on loans as well.
This is a valid concern and one worth looking into. However, all potential borrowers must rest assured that their loan plans should not be affected by the changes in the GST rates. Whenever in need, be it emergencies or leisure, loans are one of the best means to gain immediate access to finances. In particular, if you are a business owner, you should look no further than the business loans available on Finserv MARKETS to serve your entrepreneurial needs. Be it raising capital or planning an expansion for your business, the business loan at Finserv MARKETS can help you with loan amounts as high as Rs. 30 lakhs.
As for the intersection of loans and GST, let us take a closer look at some important points:
What is GST?
Let us first start by refreshing our concept of what is meant by GST. GST stands for Goods and Services Tax and was introduced in 2017 as a simple means of replacing the various complex indirect taxes in India.
GST is essentially a single indirect tax that is levied on the supply of goods and services by businesses. However, the GST rates are eventually set and revised by the government. After the purchase of goods or services, the applicable GST is paid by the customers to the businesses. It is then eventually paid to the government by the businesses that provide the goods and services themselves.
How does GST apply to loans?
The first point of concern for a potential borrower might be whether GST will apply on the repayments of their loans. If that were the case, then GST on loans would directly impact their EMI amounts. However, this is not the case. As described above, GST is applicable only on the provision of either goods or services, and repayments EMIs do not fall under this category. Therefore, you have to pay no GST on your repayments.
Having said that, lenders do provide certain services in the process of disbursing a loan to a borrower. These include charges such as processing fees, bounce charges and foreclosure charges. Since these count as essential lender-provided services, they do attract GST on loans. However, it is important to note that GST is not applied in addition to these charges, but rather determines the final figure of these charges.
Earlier, loans were accompanied by a slew of different types of taxes. With the GST on loans, however, these taxes have become more uniform and transparent since only one type of tax is levied on these charges.
What are the best loan options for me?
Keeping this in mind, the best type of loan for a borrower is one that provides loans with the most affordable and minimal charges after GST. Moreover, the loan must be accompanied with a host of benefits that provide you with a real value for your money. That is why the loans at Finserv MARKETS are a popular option among borrowers across India. In particular, the business loan at Finserv MARKETS is the perfect option for entrepreneurs and businesses alike. Here are some of the reasons why:
Caters to all business needs
You could be a budding entrepreneur looking to fund a new start-up. Or you could be a small-scale business looking for capital. Either way, the business loan at Finserv MARKETS has custom-made loans designed for all types of business needs.
The loans available on Finserv MARKETS make the most of the platform’s convenience and ease of use. You can get your loan approval in flat three minutes and receive the loan amount in your account in less than 24 hours.
With the business loans on Finserv MARKETS, you can make your repayments in easy EMIs. You can select the tenure of your choice ranging from 12 months to 5 years and pay the loan at your own convenience.
Apart from the many benefits, you are also guaranteed to have a smooth, secure and a 100% transparent loan application experience. Finserv MARKETS, is a leading online platform on which you can get the most trusted financial products in the market. That is why more than 100 million customers across India have chosen it to meet their financial goals and with the help of the Bajaj Finance personal loan, you can meet yours too.
So, whatever the running GST rate might be, you are guaranteed to receive the best loans in the market at Finserv MARKETS. You can even bring your business ideas to life with the business loans on Finserv MARKETS, and enjoy a range of value added services.
Also learn how you can save more tax through using eway bill while transporting goods above 50k. Read more about eway bill only at Finserv MARKETS
Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.