Clarification on GST on Services of Business Facilitator (BF) or a Business Correspondent (BC) to Banking Company.

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....THAN, I.A.S., COMMISSIONER OF STATE TAX Dated: 23.04.2019 Circular No. 56/2019-TNGST (RC No.26/2019/A1/Taxation) Sub: Clarification on GST on Services of Business Facilitator (BF) or a Business Correspondent (BC) to Banking Company. Representations have been received seeking clarification on the following two issues: (i) What is the value to be adopted for the purpose of....

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....he agreement of banks with the Business Correspondent specifically prohibits them from directly charging any fee to the customers for services rendered by them on behalf of the bank. On the other hand, banks (and not Business Correspondents) are permitted to collect reasonable service charges from the customers for such service in a transparent manner. The arrangements of banks with the Business C....

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....ess Correspondent to a banking company with respect to accounts in rural areas: It has also been requested that the scope of exemption to services provided in relation to "accounts in its rural area branch" vide Sl. No. 39 of Notification No. II (2)/CTR/532/(d-15)/2017 dated 29.06.2017 be clarified. This clarification has been requested as the exemption from tax on services provided by Business Fa....