The problem with banking forum is getting worse by each day and each decision which is coming under its way. Earlier it was speculated that banking community will be getting a huge sum of extra load due to the GST and will have to process this financial reform through its own means. But now it seems that banks will be at risk of getting double amount of work with GST and all the registrations along with it.
According to the GST rules and provisions, every business unit will have to register themselves in every state of its operation which means that if a bank operates in a state with its branches in every city, the registration gets multiplied by every succession of branch number. Yes, the task is extremely complex and will take compliance to the great heights. All the employees will have to see the demonetization era again into their working environment as when the note ban tried to cover its shortfalls as soon as possible there were the banks who stood aside this massive scramble.
In a recent announcement by the central government, it was decided that the banks will have register in every state in which they perform operations instead of any central registration. This announcement has taken a toll over the banking fraternity and will make the community more stressful. As from demand of the banking sector, there was a need for a central registration window to decrease any complexity for them.
In between the finance minister mentioned that “They have no choice. They have some issues relating to registration, which will be resolved in due course, We have eased some of their problems, GST will be rolled out as per schedule from July 1.” A meeting was held on the issues related to goods and services tax with the public sector banking fraternity for making some easy operational structure for them and discuss any pending issue.
The registration issue was over and over discussed at the meeting in which it was stated that currently, the banks and non-banking financial companies (NBFC) can clear off their liability of service tax compliance via a single window which is centralized for every institution. But as a matter of fact, the central government rules out the demand and made some strict issuance in this regard.
A slight relaxation showered was that now the sector is allowed to submit a single invoice per state accordingly which will ease out some workload from the banks. While talking about the GST rate on the financial sector, it has been credited with 18 percent of the tax rate which was earlier at 15 percent making 3 rupees costlier at every 100 rupees paid for the banking services.
