TaxTMI 
TaxTMI 
GST - Input Tax Credit
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....ST - Input Tax Credit<br> Query (Issue) Started By: - Ethirajan Parthasarathy Dated:- 28-4-2023 Last Reply Date:- 2-5-2023 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>Some of the new generation banks raise invoice for bank charges in the following format. Bank Charges 1000 Add : GST 180 Total 1180 Less : Discount 1000 Net Payable 180 The customer pays Rs.180 only to bank an....
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....d book it as ITC. Is ITC in such situation eligible. I invite experts opinion on above. Reply By Amit Agrawal: The Reply: What is nature of this transaction and reason for discount? Reply By Ethirajan Parthasarathy: The Reply: The nature of transaction is towards Bank Charges payable to Bank. To attract new customers & to retain old customers, some new generation banks are raising invoices ....
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....as above. Net effect is the whole basic bank charges of Rs.1000/- is not payable. Only GST of Rs.180 is paid. Please give your opinion about ITC in the above circumstances. Reply By Amit Agrawal: The Reply: ITC should be available to the recipient as bank is treating 'attracting new customers or retaining old customers' as its consideration. P.S. I am not commenting on accuracy or othe....
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....rwise about Bank's stance. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By Rajagopalan Ranganathan: The Reply: Sir, If the Bank waives Bank charges by way of giving discount then the bank is collecting nil bank charges. When the bank charges are nil where is the question of paying GST. Before taking ITC please check up wi....
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....th the bank whether gst is deposited with the Government or the bank did not file any refund claim against GST paid/payable. Reply By Padmanathan Kollengode: The Reply: I agree with views of Sri. Rajagopalan sir. If the factual position narrated by you is correct, there appears to be some anomaly with the practice followed by the bank. Also pls check if Rs.1,000 is given as discount or by way o....
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....f commercial credit note. Since most banks do not issue invoice/ CN-DN etc, kindly check in GSTR-2B. If it is latter case, ITC would be eligible. Reply By Shilpi Jain: The Reply: If the transaction between the bank and you is not a related party transaction then this invoice itself should not be issued. What is the purpose of issuing an invoice only for paying GST to the Govt when no actual cons....
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....ideration is paid for such services?<br> Discussion Forum - Knowledge Sharing ....