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ITC availability on Bank charges when bank charges reversed by bank deducting GST

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Vipin Kumar

108 Points Posted on 28 October 2021

our bank charged us 100000.00 as cash deposit charges and charged 18000.00 GST on it
after 2 months bank reversed 100000.00 as we were having a previous approval from the bank for not charging cash deposit charges
now I got my 100000.00 back but bank is not refunding 18000.00 of GST Amount as the bank is asking us to claim it as ITC from GST

Can we claim GST on cash deposit charges which were reversed by the bank, if not it will be loss to the business

Thanks in Advance

Replies (4)

Quick Summary

A business was charged cash deposit fees and GST by their bank. The bank later reversed the fees, but not the GST. The business is asking if they can claim the GST as Input Tax Credit (ITC) since the service was effectively not rendered, or if this will result in a financial loss. The consensus is that if a GST invoice was provided and the GST is reflected in GSTR2A, ITC can be claimed, provided the bank issues a credit note without GST for the reversed charges.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 28 October 2021

In order to process a refund claim, the following procedure must be adhered to:

Visit the GSTN portal and fill in the application form meant for claiming refund.
You will receive an email or SMS which contains an acknowledgment number after the filing of application is done electronically.

Vipin Kumar

108 Points Posted on 28 October 2021

Sir we don't want refund, can we adjust it in our liability

Rajendra Prasad

Employee Private

1142 Points Posted on 28 October 2021

What sought of document given while charging the cash deposit charges.?

How ever Here the services of Cash depositing has been rendered by bank and charged along with GST. Further they have returned the amount of Charges only.

Request Bank to provide the Tax Invoice for the Charges collected, and financial credit note with out GST. Then you can claim ITC as you have received services, Having Tax Invoice for the same and Tax Paid by the bank to the Government.