Compliances of GST in Banking Sector
Banking Sector plays a key role in Indian Economy. For safe and sound banking sector, one of the most crucial factors is reliable financial information supported by quality bank audits. By conducting audits of financial statements of banks, the auditors play a key role in building a resilient banking sector. Bank audit involves huge volumes and complexity of transactions, wide geographical spread of banks’ network, enormous range of products and services offered by banks, extensive use of technology in banks etc. All these factors make the task of the bank auditors quite challenging in doing the audits and especially when there is a change in taxation law i.e. GST. The shift from centralised registration to state wise registration, place of supply provisions, restrictive credit of 50%, ISD Compliance under GST regime, reverse charge transactions and especially transitional credits & its compliance is area of review during the audit.
Considering the intricacies involved, the GST & Indirect Taxes Committee has revised its e-publication titled “Compliances of GST in Banking Sector”. The revised booklet has been updated with the GST provisions applicable to Banking Sector for the financial year 2018-19.
We trust this publication will be of practical use to members while conducting the bank audit assignments. We look forward to feedback from members for further improvement in this publication in subsequent years. Suggestions may be sent at gst@icai.in.