Interest subvention to Mercedes captive finance arm attracts GST- TNAAR

The Tamil Nadu Authority for Advance Ruling (AAR) has ruled that the interest subvention income received by Daimler Financial Services India Private Limited (DFSI) from Mercedes-Benz India Private Limited, to reduce the effective interest rate to the final customer, attracts a GST of 18% (9% CGST and 9% SGST). Daimler Financial Services had moved the AAR seeking a clarification on whether interest…