Banks charge GST

Late payment of EMI or late payment of credit card will be heavy, Banks charge GST

The indirect taxes between the ongoing illusions regarding the introduction of Banks charge GST to the customers and customs board and custom have been clarified by issuing notes on Monday.

It clearly states that in which situation the bank can recover GST for which services. The dispute was found in GST at the banking facility when different views were made regarding the installation of GST on the financial services department of the Finance Ministry and the revenue department’s free services.

After this, indirect taxes and customs boards and customs have come forward and confused with the introduction of GST for various financial services. The note issued in the form of question and answer from the Department has stated that GST will not be levied on the free services like ATM, check book or statement given to the customers by the banks. But GST will be installed on all the services offered in addition to the free service.

More on ATM usage

Customers are given 3-5 ATM clearance free per month by the banks. No GST will be levied on this, but the extra clearance from this free withdrawal will be within the purview of the tax.

Taking a check book with a fee

Customers will not get GST on a free check book or free balance statement received from the bank. But if any customer other than the free facility receives the check book or his statement by paying the bank, the GST will be payable on it.

Loan on the acquisition of another bank

If any bank loan is transferred to another bank, the transaction processing fee is charged on it. GST will also be payable on this fee. However, interest on loan will be exempted from such fees and GST.

On missing the EMI

In case of default in EMI payment within the prescribed time limit, additional interest charges are levied. Under section 15 (2) of CGST Act 2017, the customer will also have to give GST on such charges.

Opposed to imposing GST here

Global Union of Aviation Companies International Air Transport Association (IATA) has criticized India for imposing GST on international air tickets. IATA Director General and CEO Alexandr D. Jainik said that we should talk to the government strictly.Governments are ignoring global rules made by us, which is unacceptable. GST is imposing on such tickets in violation of the proposals of the International Civil Aviation Organization (ICAO), an institution of India-Suhankrit Nation.

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