AAR: Interest subvention income received by Non-Banking Financial Institution from vehicle dealer, taxable at 18%

Tamil Nadu AAR holds that ‘Interest subvention income’ received by applicant, a Non-Banking Financial Institution from Mercedes-Benz India Pvt. Ltd.  (MB) to reduce the effective interest rate on vehicles sold to the final customer is chargeable to 18% GST as per Notification No. 11/2017-Central Tax (Rate) and corresponding State Notification; Observes that, agreement titled ‘Mercedes-Benz Financial’ between applicant and buyer of MB is for disbursing of loan for...