GST to be imposed after free ATM limit withdrawal
Monday - June 4, 2018 2:59 pm ,
Category : WTN SPECIAL
GST on customer care, branch visit, bank draft, mobile banking, internet banking
JUNE 04 (WTN) – Obviously you have account in banks and definitely you use bank services, but since the GST has been implemented in the country, since then, there are many questions in the minds of the people on which services of the bank GST is implemented. But the Central Board of Indirect Tax and Custom (CBIC) have made it clear that on which services the GST will be implemented.
CBIC has clarified that GST (Goods and Services Tax) will not be levied on free services such as ATMs, check books or statements given to customers in the bank's doorsteps. However, the tax department has made it clear that if the late payment of credit card dues or failure to pay EMI, the banks will levy GST on late fees. Apart from this, the GST will be implemented in addition to free services of banks. That is, if there is any withdrawal after free withdrawal limit from the ATM, then GST will be levied.
Let you know that the dispute in GST, on the banking facility, came when different views of the department of financial services and department of revenue of the finance ministry came out with separate views regarding the GST being imposed on free services. After this, the Central Board of Indirect Texts and Customs have tried to clarify the matter completely for banks and customers while releasing FAQ.
It is clear now that no GST will be imposed on free ATM withdrawal, given by banks to its customers per month, but after this free withdrawal limit there will GST be levied. Likewise customers will not be charged GST on the free check book or free balance statement received from the bank. But GST will be payable on receipt of checkbook and statement giving the bank charges other than the free facility.
According to the FAQ of the tax department, if the bank gives a discount on service charges for any service to its customers, then in such a situation, GST will be charged after reducing the discount from the total service charge. Due to this decision, customers will have to give GST on customer care, branch visit, bank draft, mobile banking, internet banking etc.
JUNE 04 (WTN) – Obviously you have account in banks and definitely you use bank services, but since the GST has been implemented in the country, since then, there are many questions in the minds of the people on which services of the bank GST is implemented. But the Central Board of Indirect Tax and Custom (CBIC) have made it clear that on which services the GST will be implemented.
CBIC has clarified that GST (Goods and Services Tax) will not be levied on free services such as ATMs, check books or statements given to customers in the bank's doorsteps. However, the tax department has made it clear that if the late payment of credit card dues or failure to pay EMI, the banks will levy GST on late fees. Apart from this, the GST will be implemented in addition to free services of banks. That is, if there is any withdrawal after free withdrawal limit from the ATM, then GST will be levied.
Let you know that the dispute in GST, on the banking facility, came when different views of the department of financial services and department of revenue of the finance ministry came out with separate views regarding the GST being imposed on free services. After this, the Central Board of Indirect Texts and Customs have tried to clarify the matter completely for banks and customers while releasing FAQ.
It is clear now that no GST will be imposed on free ATM withdrawal, given by banks to its customers per month, but after this free withdrawal limit there will GST be levied. Likewise customers will not be charged GST on the free check book or free balance statement received from the bank. But GST will be payable on receipt of checkbook and statement giving the bank charges other than the free facility.
According to the FAQ of the tax department, if the bank gives a discount on service charges for any service to its customers, then in such a situation, GST will be charged after reducing the discount from the total service charge. Due to this decision, customers will have to give GST on customer care, branch visit, bank draft, mobile banking, internet banking etc.
