GST liability for business facilitator services: banking companies liable for GST on customer service charges; RBI classification governs rural exemptions. Under RBI guidelines banks appoint BF/BC, pay commission, prohibit BF/BC from charging customers, and account for transactions in the bank's books; the banking company is the service provider and liable to pay GST on the entire service charge or fee charged to customers. For the rural-branch exemption, services by BF/BC must fall under Heading 9971 and relate to accounts of a branch classified as rural under RBI guidelines, with the bank's RBI-based classification being accepted for exemption purposes.
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Provisions expressly mentioned in the judgment/order text.
GST liability for business facilitator services: banking companies liable for GST on customer service charges; RBI classification governs rural exemptions.
Under RBI guidelines banks appoint BF/BC, pay commission, prohibit BF/BC from charging customers, and account for transactions in the bank's books; the banking company is the service provider and liable to pay GST on the entire service charge or fee charged to customers. For the rural-branch exemption, services by BF/BC must fall under Heading 9971 and relate to accounts of a branch classified as rural under RBI guidelines, with the bank's RBI-based classification being accepted for exemption purposes.
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