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SUPPLY BY BANKS UNDER GST

Goods and Services Tax - GST - By: - Dr. Sanjiv Agarwal - Dated:- 14-3-2017 Last Replied Date:- 14-3-2017 - GST will be levied on supplies and not on sale or service. For the purpose of GST, supply shall include: all forms of supply of goods and/or services made or agreed to be made for a consideration by a person in the course or furtherance of business, Importation of service for a consideration, and Services have been specified in schedule I, which shall be considered as a supply even if made .....

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anks / FI / NBFC and its agents would also be considered as supply and liable to GST. This would cover transactions with recovery agent, auctioneer etc. Any lease, tenancy, license a letting out of land and building, transfer of business assets or their disposal, renting of immovable property temporary transfer of intellectual property rights, series in relation to information technology software and works contracts will be treated as supply of services. Non-Performing Assets (NPAs) are common t .....

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s. Leased assets from outside India shall be subject to levy of IGST. In case of repossession of assets by banks / FIs / NBFC's, same will be treated as supply of goods in term of Schedule-II to the model GST law (version-II). Accordingly, any transfer of the title in goods is supply of goods. Where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, wheth .....

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med to be a taxable person. GST will be applicable on such transactions which will add to the cost of services. Presently, VAT is applicable but GST may be levied at a higher rate. Many banks are also engaged in insurance business for which place of supply is crucial. Readers may refer to Chapter 5 for the detailed study on insurance services. Since interest is a return on money lent to borrowers, it may continue to the out of GST net. Presently, leasing companies are burdened with both taxes- V .....

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of the following events: Date of issue of invoice or on the last date on which invoice is required to be issued. Date on which bank receives payment with respect to such supply. As per place of supply provisions, if banks are required to pay tax on reverse charge basis, then time of supply shall be earlier of the following events: Date on which payment is made or Date immediately following sixty days from the date of issue of invoice by the bank / service provider Place of Supply As per section .....

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ation of supplier (banking company) or location of the recipient is outside India, location of bank shall be the place of supply for: (a) services supplied by a banking company, or a financial institution, or a non-banking financial company, to account holders; (b) intermediary services. The issue which arises here is determination of appropriate state which will pay the tax in case of massive volume of transactions or multiple state activities. The place of supply in such shall determine the st .....

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y of taxes on real time basis based on address is not possible. In present regime, service tax is charged from account of the customer affecting such RTGS or NEFT on real time basis. Under GST, place of supply provisions provides solution to this issue. It provides for levy of tax in the State in which registered address of customer is mentioned in records (i.e., KYC documents) of the bank. The GST shall be levied on real time basis as in the present regime. Another issue for concern could be in .....

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