The honorable Calcutta high court in the case of RAMESH KUMAR PATODIA VS.CITI BANK NA AND ORS.(WPO 547 OF 2019) has held that the GST will be leviable upon the interest component of the equated monthly instalments of the credit card services . Some relevant observations of the court are :

“There is however, no quarrel to the proposition laid down by the Hon’ble Supreme Court in Himalayan Co-operative Milk (supra) that the purpose of the notification providing for exemption should not be defeated nor those who may be entitled to it are to be deprived by interpreting the notification which may give it some meaning other than what is clearly and plainly flowing from it.

Upon a plain reading of the notification dated June 28, 2017 it is evident that the interest involved in credit card services is not exempted. Thus, the said decision is of no assistance to the petitioner in the instant case.”

The judgement can be accessed at :

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