Service provider liability: banks must pay GST on customer service charges; rural-branch exemption depends on RBI classification. Banking companies operating BF/BC arrangements are the service providers for GST and must pay GST on the entire service charge or fee charged to customers, regardless of collection via BF/BC. The exemption for BF/BC services relating to 'accounts in its rural area branch' requires that such services fall under Heading 9971 and relate to a branch classified as rural under RBI guidelines; the bank's RBI-based classification will be accepted for claiming the exemption.
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.
Service provider liability: banks must pay GST on customer service charges; rural-branch exemption depends on RBI classification.
Banking companies operating BF/BC arrangements are the service providers for GST and must pay GST on the entire service charge or fee charged to customers, regardless of collection via BF/BC. The exemption for BF/BC services relating to "accounts in its rural area branch" requires that such services fall under Heading 9971 and relate to a branch classified as rural under RBI guidelines; the bank's RBI-based classification will be accepted for claiming the exemption.
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