To what extent is invoice  discounting or cheque discounting or any other similar form of discounting exempt under GST?

Discounting of invoices or cheques falls within the meaning of “services by way  of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount”. Such discounting is exempt from payment of GST, as such discounting is nothing but a manner of extending a credit facility or a loan.

However, if some service charges or service fees or documentation fees or  broking charges or such like fees or charges are charged, the same would be a consideration for supply of service and chargeable to GST.

Q 43 of GST FAQs on Financial Services Sector published by CBIC