Must interest income be reported in a GST return?
Yes. Interest received should generally be reported in the GST return for GST purposes.
How is interest from local banks or companies treated for GST purposes?
Interest received from local banks or companies is generally treated as an exempt supply. No GST is required to be charged on the interest received.
How is interest from overseas banks or companies treated for GST purposes?
Interest received from overseas banks or companies may qualify as an international service and should generally be reported as a zero-rated supply instead of an exempt supply.
Why is the GST treatment of interest income important?
The GST treatment of interest income may affect GST reporting and input tax recovery positions of a business.
