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ITC on BANK CHARGES

Pardha Saradhi (Manager - Accounts) (64 Points)

18 July 2017

Please clarify are we eligible to take credit for the GST paid on all types of bank charges

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13 Replies

Sandeep Upadhyay (1518 Points)
Replied 18 July 2017

Yes eligible to claim ITC if registered

Sachin Rajput (account exe) (593 Points)
Replied 18 July 2017

Yes eligible but your GSTN should be in records of your bank.

1 Like

vipin (executive) (46 Points)
Replied 24 August 2017

In case of ITC on bank charges you need tax invoice then how can u get from the bank.

1 Like

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 07 September 2017

bank having GSTN & we have given our GSTN to bank.

when they levied bank charges , told us its inclusive of GST. what other documents need to tak ITC of the same?

deepak (Sr. Excutive in Finance & Accounts ) (22 Points)
Replied 14 September 2017

we call to bank and he said that How he raised tax Invoice Against Bank charges.

narendra (Accountant) (275 Points)
Replied 18 September 2017

No need for a separate tax invoice from the bank. The Bank Statement reflecting such bank charges is treated as a tax invoice.

This was clarified by GST council in a Tweet !

1 Like

Navneet Bagri (:)) (70 Points)
Replied 26 September 2017

Can i apply ITC for the July and August at present?

Dhanalaxmi (Accounts Executive) (30 Points)
Replied 03 May 2018

Our banker is collecting charges including GST for making payments through RTGS, NEFT & Interest on OD. As being a Registered company Can we utilise the credit of GST collected from us. If so, what is the documents require to be collected from Bank, so that we can claim for Credit.

Jeeva Thangavelu (Student CA Final ) (609 Points)
Replied 03 May 2018

The bank statement issued by the bank itself is accepted as valid document as per GST council clarification. Yet certain banks issue a statement of charges on monthly basis on request. The same shall be obtained.

1 Like

narendra (Accountant) (275 Points)
Replied 02 June 2018

Yes, it's better to to obtain a separate statement of charges or Tax Invoice from your Bank.

Proves useful, to get exact breakdown of taxable value and tax amount (most banks show bank charges on their bank statement as inclusive of tax).

It also helps determine on which charges IGST is applied and on which ones CGST/SGST is applied. For e.g. some charges are levied by your local branch (here CGST and SGST is applied) and some charges are levied by bank's central-processing unit or H.O., which, if falling under a different State will apply IGST.

Above details will help you to match/reconcile monthly totals of the breakdown to your GSTR-2A.

Dhanalaxmi (Accounts Executive) (30 Points)
Replied 05 July 2018

One of our customer registered under GST and not notified to us. We treated the supply as URD supply and while submitting the GSTR-1 we considered in B2C Supplies. But the customer has claimed the Credit of GST which we collected on bill. Now the customer wants that the bills should revise and upload the same in B2B supplies.

How to rectify the data already uploaded in GSTR-1 after submitting & filing the returns ?

Kinjal Shah (student) (43 Points)
Replied 23 December 2019

How will the accounting of bank charges done in case there is foreign outward remittance and bank is charging "gst on foreign conversion"?

CMA M.Keerthi chandra (C.A FINAL STUDENT AND QUALIFIED C.M.A) (561 Points)
Replied 23 December 2019

@ Dhanalaxmi

In upcoming tax period,in Amend B2B invoices column enter freshly the details of missed Invoice and simultaneously adjust the B2C figure of the respective Month in 'Amendments to B2C coloumn in the same GSTR-1.

Regarding bank charges , since most of the banks are entering B2B details of clients and same are reflected in 2A also, credit can be taken and not an issue.