GST on processing fee (प्रोसेसिंग शुल्क पर जीएसटी)
GST at 18% applies to lender fees such as processing, bounce and penal charges, but not to the interest itself, which is exempt. The GST amount should be shown separately in your Key Fact Statement and fee receipts.
Worked example
Processing fee ₹1,000 → GST ₹180 → total deduction ₹1,180. On a ₹40,000 loan you would receive ₹38,820 while repaying interest on ₹40,000.