<p style="text-align:justify"><span style="font-size:14px"><span style="color:#34495e">Discounting of invoices or cheques falls within the meaning of &ldquo;services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount&rdquo;. Such discounting is exempt from payment of GST, as such discounting is nothing but a manner of extending a credit facility or a loan.<br />
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However, if some service charges or service fees or documentation fees or broking charges or such like fees or charges are charged, the same would be a consideration for supply of service and chargeable to GST.</span></span></p>