sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« GST - Goods and Services Tax »
  GST Audit: All You Need to Know
 Special Deposit Scheme (SDS)-1975 Payment of interest for calendar year 2018
 Budget made ‘unreasonable demands’ on GST, but wasn’t a failure: Ex-CEA Arvind Subramanian
 Your neighbourhood sweet shop could become a restaurant to dodge GST
 Deadline for filing annual GST return extended to March 31
 GST enabler for boosting retirement savings
 Multiplex and theatre owners in Uttar Pradesh get relief under GST regime
 CAIT urges FM Arun Jaitley to extend last date for GST filing to March 2019
 Key points for first ever filing of GST Annual returns
 India Inc seeks more time for filing GST annual returns, audit reports
 New GST returns filing system ready but govt may not rollout before polls

Here's how GST impacts your money
June, 06th 2018

Due to its complex nature, there is a lot of confusion about how Goods and Services Tax (GST) applies to the financial sector. Very few have had clarity on how personal finances are impacted by the new tax regime.

Finally, the government has issued detailed FAQs. The detailed clarifications on banking, insurance and capital markets seek to address some pertinent issues relating to the industry such as levy of tax on free services as well as provide clarity to individuals. Below are a few of the clarifications:

GST on exit load of mutual funds
Exit load in the form of a fee (whether or not as a fixed percentage of the investment) is liable to GST. Even if the exit load is in the form of units in the fund, it may be concluded that the consideration received in money was later converted to NAV units.

Loan of one bank being taken over by another bank?
GST will be chargeable on any transaction processing fees levied for such takeover of loans, but not on the interest component (as interest is exempted).

Additional interest charged in case of default in instalment payment
As per Section 15(2) of CGST Act, 2017, the value of supply includes, inter alia, interest for delayed payment of any consideration for any supply. Additional Interest charged for default in payment of instalment in respect of any supply, which is subject to GST, will be includible in the value of such supply and therefore would be liable to GST.

Recommended By Colombia

Charges for late payment of dues on credit card outstanding
GST applies on these charges. The exemption from levy of GST on interest specifically excludes interest charged on outstanding credit card balances as per serial no. 27 of the table of notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017, as amended.

Banking services
According to the FAQs, automated tellers machines or ATMs will not constitute place of business and will not trigger GST registration, the government said. In case services are provided by multiple branches to a customer, the branch where the account is opened will pay GST and other branches will be deemed to provide services to the main branch. In case of import of gold, integrated GST will apply once, on import, and not again when it is appropriated by banks.

NRIs
Insurance policies issued to Non-Resident Indians are liable to GST where payment is made from non-resident accounts in Indian rupees, according to the FAQs.

Investors
According to the FAQs, securitisation, future contracts, derivatives and forward contracts in commodities, unless entailing actual delivery of commodities, will however not be liable to this tax.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions