GST liability on banking services clarifies banks are service providers and liable for GST on customer service charges. Banks are the taxable service providers in BF/BC arrangements and must pay GST on the entire service charge or fee charged to customers even when collected via BF/BC. GST exemption for BF/BC services applies only if those services, rendered in their individual capacities, fall under Heading 9971 and pertain to accounts of a branch classified as rural; branch classification and permissible services are governed by 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 banking services clarifies banks are service providers and liable for GST on customer service charges.
Banks are the taxable service providers in BF/BC arrangements and must pay GST on the entire service charge or fee charged to customers even when collected via BF/BC. GST exemption for BF/BC services applies only if those services, rendered in their individual capacities, fall under Heading 9971 and pertain to accounts of a branch classified as rural; branch classification and permissible services are governed by RBI guidelines and the bank's classification should be accepted.
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