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 is the location of the recipient of the services on the records of the supplier of services. In general, this will be the State in which the account exists. For example, if the account is held in Delhi, and some services are obtained by the account holder in Maharashtra, the place of supply of
services will be Delhi (and hence Central tax / State tax or Union territory tax will be chargeable).
In such transactions, the branch in Maharashtra will only be a facilitator for providing these services. If the branch in Maharashtra levies any charges on the branch in Delhi for providing this facility, that will be a separate supply between the two branches, it will be chargeable to Integrated
tax.
Q 61 of GST FAQs on Financial Services Sector published by CBIC