GST liability on BF/BC services: banks responsible for GST on service charges, rural-branch exemption follows banking classification. Banks are the service providers in the BF/BC model and must pay GST on the entire value of service charges or fees charged to customers, even if transactions are facilitated by BF/BCs who are paid commission by the bank. Exemption for BF/BC services requires that the services fall under Heading 9971 and pertain to accounts of a branch classified as rural; the bank's classification under applicable banking guidelines is determinative for 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.
GST liability on BF/BC services: banks responsible for GST on service charges, rural-branch exemption follows banking classification.
Banks are the service providers in the BF/BC model and must pay GST on the entire value of service charges or fees charged to customers, even if transactions are facilitated by BF/BCs who are paid commission by the bank. Exemption for BF/BC services requires that the services fall under Heading 9971 and pertain to accounts of a branch classified as rural; the bank's classification under applicable banking guidelines is determinative for the exemption.
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