GST on BF/BC services: banks bear tax liability on customer service charges and rural-branch exemptions depend on branch classification. The banking company is the service provider in the BF/BC model and is liable to pay GST on the entire service charge or fee charged to customers, irrespective of collection via BF/BC, because transactions must be reflected in the bank's books and the bank remains responsible for BF/BC acts. The rural-branch exemption for BF/BC services applies only where the services fall within the financial services classification and relate to accounts of branches classified as rural under the bank's regulatory classification.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
GST on BF/BC services: banks bear tax liability on customer service charges and rural-branch exemptions depend on branch classification.
The banking company is the service provider in the BF/BC model and is liable to pay GST on the entire service charge or fee charged to customers, irrespective of collection via BF/BC, because transactions must be reflected in the bank's books and the bank remains responsible for BF/BC acts. The rural-branch exemption for BF/BC services applies only where the services fall within the financial services classification and relate to accounts of branches classified as rural under the bank's regulatory classification.
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