India's GST committee reportedly proposes 18% tax on NBFC services to banks

The Economic Times reports, citing people aware of the development, that a GST Council committee has backed an 18% tax on services non-banking finance companies supply to banks in co-lending arrangements. Interest on the underlying loans would remain exempt, while the taxable service's value would follow Reserve Bank of India methodology. An unnamed official told the paper a circular would be issued if the GST Council approves the proposal.