*Ramesh Kumar Patodia Vs Citibank N.A[Calcutta High Court]*
Date: July 25,2023
Sub:*Whether loan on credit card granted by Citibank is liable for IGST in terms of the IGST Act even when the interest on loan is exempted from IGST ?*

The Division bench of Calcutta High Court in this case was dealing with an appeal against order of Single Bench where the *levy of IGST on interest on loan on credit card was upheld even though the interest on loan is exempted from GST by virtue of notification dated June 28, 2017 issued by Central government. *

In an appeal against the said judgement, where I argued the matter *in person*, the bench appreciated that when the loan was granted to me by way of a demand draft without any use of credit card, the said transaction was a transaction of loan simpliciter and not a credit card service and interest charged on such loan could not have been said to be interest involved in credit card service and thus was eligible for benefit of exemption notification which was issued on 28th June, 2017.

The bank has been directed to refund the IGST charged to me within a period of three months.

While Justice IP Mukherjee wrote the main judgement, Justice Biswaroop choudhary gave additional arguments while concurring with him and charging of GST being violative of Article 14 and 21 of Constitution of India.

This judgement will be beneficial to all those credit card holders who have availed loan from such credit card companies and have been charged GST.

Ramesh Patodia
July 25,2023