GST liability on business correspondent services: banking company treated as service provider and responsible for tax on customer fees. Banking companies are the service providers where BF/BC act on their behalf and must pay GST on the entire value of service charges or fees charged to customers; BF/BC receive commission and cannot directly charge customers. Exemption for BF/BC services regarding accounts in a rural area branch applies only if the services fall under Heading 9971 and relate to a branch classified as rural per RBI guidelines, and the bank's classification should be accepted.
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 liability on business correspondent services: banking company treated as service provider and responsible for tax on customer fees.
Banking companies are the service providers where BF/BC act on their behalf and must pay GST on the entire value of service charges or fees charged to customers; BF/BC receive commission and cannot directly charge customers. Exemption for BF/BC services regarding accounts in a rural area branch applies only if the services fall under Heading 9971 and relate to a branch classified as rural per RBI guidelines, and the bank's classification should be accepted.
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