No GST on Withdrawal Of Cash From Banks

Last updated: 03 August 2022

Save Share

Quick Summary

Finance Minister Nirmala Sitharaman has confirmed that there is no Goods and Services Tax (GST) applicable on withdrawing cash from banks. She clarified in the Rajya Sabha that while customers may face charges for exceeding free ATM transaction limits, the withdrawal itself is not subject to GST. The GST is only applied to the purchase of cheque books by banks from printers, not on customer cheque books or cash withdrawals.

There is no GST on withdrawal of cash from banks, said Finance Minister Sitharaman on Tuesday. "There is no GST on withdrawal of cash from banks... 5+5=10 transactions in a month is totally free when withdrawn from ATMs," said Finance Minister Nirmala Sitharaman, in a discussion on the rising prices, in Rajya Sabha.

No GST on Cash Withdrawals from Banks, Confirms FM

She added that GST tax only on bank purchasing cheque book from printers. She said there is GST on customer cheques and on the withdrawal of cash from banks.

FAQ :

No, the Finance Minister has confirmed there is no GST on the withdrawal of cash from banks.

Finance Minister Nirmala Sitharaman stated that there is no GST on withdrawing cash from banks and that 5+5=10 transactions in a month are free when withdrawn from ATMs.

While the withdrawal of cash from banks is not subject to GST, there may be charges if you exceed the free transaction limit from ATMs, which is typically 10 transactions per month (5 from own bank, 5 from other banks).

GST is applied on bank purchasing cheque books from printers. It is not applied on customer cheque books or the withdrawal of cash.

6177 Views Comment Share GST Report

News posted by

CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

View News

Comments :