A Goods and Services Tax (GST) of 18% is applicable on all home loan rates and charges as per government norms. For example, if you have taken a home loan of Rs. 1 crore at a 1% processing fee, your home loan processing fee would be Rs. 1 lakh, and you will have to pay a GST of Rs. 18,000 on it. So, your total processing fee would become Rs. 1,18,000. GST has made home loans a little more expensive for home buyers.