What is the leviability of GST on securitization transactions undertaken by banks? Securitized assets are in the nature of securities and hence not liable to GST. 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 provision… Read More »
Whether GST will be levied on interchange fees on card settlement fees paid/shared by banks? Fees charged for card settlement is a consideration which is part of a separate transaction between the banks which are parties to this transaction and shall be liable to GST. This is a B2B supply and credit of this transaction is… Read More »
Whether GST will be levied on sale of re-possessed asset? Sale of repossessed asset falls within the scope of supply and will be chargeable to GST. Q 63 of GST FAQs on Financial Services Sector published by CBIC
Will GST be charged in transactions, where loan of one bank is taken over by another bank? GST will be chargeable on any transaction processing fees levied for such takeover of loans, but not on the interest component (as interest is exempted). Q 62 of GST FAQs on Financial Services Sector published by CBIC
What will be the place of supply in cases where the account is held in a bank in one State but some services are availed in a different branch of the same bank in another State. As per the provisions of Section 12(12) of the IGST Act, 2017, the place of supply of services for a bank… Read More »
In the case of gold (metal) loan, whether the supply of gold (metal) to the jeweller will be deemed to take place at the time of delivery of gold (metal) or at the time when the price of gold (metal) is fixed by the jeweller? The Gold (Metal) Loan Scheme approved by the Reserve Bank of India is a… Read More »
Is the Nominated Bank, receiving gold on consignment basis, required to pay IGST on import of gold from the overseas supplier? The dispatch of gold by the principal from a place outside India to the Bank in India is deemed to be a supply in terms of para 3 of Schedule I to the CGST… Read More »
Will the management oversight or stewardship activities performed in relation to business operations by the Head Office of a Bank to a Branch in India be considered as a supply of services by the Head Office even when there is no consideration charged by the Head Office, nor any expenditure recorded in the books of account… Read More »
Are services supplied by a Bank to its branch / head-office outside India, which are neither intermediary services nor services to account holders, taxable under GST? GST is a destination based consumption tax. Such services provided by a Bank or the branch of a foreign Bank in India to its offshore branch / head-office, which are neither intermediary… Read More »
What is the manner of dealing with various services provided by banks and other financial institutions? Banks and financial institutions provide a bouquet of financial services relating to lending or borrowing of money or investments in money and other related services. For such services invariably a variety of instruments are used in the financial markets.… Read More »