Banking company is liable to pay GST on the entire value of service charges

Category: Business

Read this Article- https://vjmglobal.com/gst/gstupdate/page/3/ Introduction The board, vide circular no. 86/05/2019-GST dated 1st January, 2019, has clarified various issues with respect to services of BF or BC to the banking company and the same is highlighted in the current article. Banking company to pay GST on the entire value of service charges. Banking company is liable to pay GST on the entire value of service charges Services are provided by the BF/BC to the customers on behalf of the banking company. As per the agreement between the bank and the BC, BC cannot directly charge any fee to the customer. In fact, banks are permitted to collect reasonable service charges from the customer for such services in a transparent manner. Further agreement with the customer specifically mentions that bank is responsible for the acts of omission and commission of the BF/BC. Read more on- https://vjmglobal.com/gst/gstupdate/page/3/