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GST for banking sector

Sonal Kale (1 Points)

25 May 2017

Please can anyone provide in detail applicability of GST to banking sector

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sanjay singhal (59 Points)
Replied 25 May 2017

regjstration : no centralised registration
ITC : 50 % credit on input.
retutns : return filling in each state.
supply : branch transfer of goods or services will be subject to tax.
ISD may be applicable.
others

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 25 May 2017

For banks providing supply of services the requirements are. 1. Currently all banks have centralised registration for all its branches. Banks having branches in multiple state and union territory will be required to take registration in each state n UT under gst. Further transfer of services from one branch to another even without consideration would b liable for gst. Interstate supply of goods and services between two branches of the same bank located at different state Wouldd b liable to gst Banks engaged in supplying services by the way of accepting deposit and extending loan have to reverse 50% of eliGive it's on inputs , input services and capital goods Also option have been given to reverse 50% of combat credit instead of reversing based on input service partly used for taxable supply and partly for exempted supply Under gst the term service has wider scope which MAY cover interest as well ( CLARIFICATION REQUIRED ON IT) In case of sale of repossessed assets banks are treated as suppliers of such assets, the overall cost of bank Operations would go up as gst rate would be higher than the present rate