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

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....Jt. Commissioner of State Taxes and Excise, South Zone, North Zone, Central Zone, H.P. 2. The Joint Commissioner of State Taxes and Excise, Central Zone, North Zone, Flying Squad, NZ/ SZ/ CZ. 3. The Dy. Commissioner of State Taxes and Excise, Shimla, Solan, BBN Baddi, Sirmour, Bilaspur, Hamirpur, Mandi. Kullu, Chamba, Kangra, Revenue Distt Nurpur and Una, H.P 4. The Asst....

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.... examined. The issues involved are clarified as follows: 2.1 Issue 1: Clarification on value of services by BF/BC to a banking company: As per RBI's Circular No. DBOD. No. BL.BC. 58/22.01.001/2005-2006 dated 25.01.2006 and subsequent instructions on the issue (referred to as 'guidelines' hereinafter), banks may pay reasonable commission/fee to the BC, the rate and quantum of which may be review....

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....facilitator model or the business correspondent model operated by a banking company as per RBI guidelines. The banking company is liable to pay GST on the entire value of service charge or fee charged to customers whether or not received via business facilitator or the business correspondent. 3. Issue 2: Clarification on the scope of services by BF/BC to a banking company with respect to accoun....