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DGGST Asks Banks to Pay GST on Free Banking Services

Pay GST on Free Banking Services

The Directorate General of Goods and Services Tax Intelligence (DGGST) has informed several banks by sending prior notices regarding the payment of taxes. It comprises SBI, HDFC, ICICI Bank, Axis Bank and several other banks. These banks have collected money from the customers for not keeping the minimum balance in their accounts but haven’t paid taxes to the government. DGGST is also demanding that banks should pay also taxes on the free facilities provided to the account holders who have maintained the minimum balance in their accounts.

According to the official sources, the banks can take some actions against DGGST in this matter and they might further appeal to the government. The Directorate General of Goods and Services Tax Intelligence (DGGST) has started doing investigations in respect of keeping the minimum balance in bank accounts and various services being offered by the banks to the customers. It was found that either bank charged some fee for their services from customers who were not keeping the minimum balance in their accounts or provided some free facilities to those who are maintaining the minimum balance.

Read Also: AAR Says Duty-Free Shops Should Attract GST Burdening Already Higher Rentals

The most challenging situation for the banks is that the tax department has also asked them to pay tax on the fee charged for back-dated transactions/services. The banks are in trouble as to how they are supposed to collect taxes from the customers on their old transactions. It is being stated that this amount may have crossed thousands of crores of rupees.

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Published by Poonam Hotwani (Ex-Employee)
Poonam Hotwani completed her schooling and graduation from Kota (Rajasthan). Pursued her MBA from Poornima Group of Colleges in Jaipur. Being a management student, she began her career as an academic content writer. She is dedicated, passionate and sincere about her work. Her keen interest areas are exploring websites, reading, writing and cooking. View more posts
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1 thought on "DGGST Asks Banks to Pay GST on Free Banking Services"

  1. Please Sir close the unnecessary banks and save money and public.

    I am government employees but not secure our future because we connected from PRAN and we do not find seventh pay arrear and government announced three parts of payment where we go for solutions.

    The government says for made cashless but everywhere put the changes tax then how can possible cashless India

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