Before giving out cheques, make sure to double check your account balance. A fine of Rs 500 plus GST charges is applicable on bounced cheques. Further, the account holder can also be subjected to legal proceedings. After the amendment in the Negotiable Instrument Act of 1881, Bounced Cheques are a legal offence under section 138. Convicted individuals may have to serve up to up to 2 years of jail or capital punishment amounting twice the cheque amount or both.
However, the lawsuit can be filed only if the cheque bounces due to inadequate balance. Non-financial reasons such missing date or signature will not attract any legal action.
GST Charged Against Cheque Bounce by Some Banks
| Banks | Inadequate Balance | Non-Financial Reasons | Source Url |
|---|---|---|---|
| SBI | INR 500 + GST | INR 150 + GST | https://goo.gl/3xcGMG |
| ICICI | INR 750 + GST (ICICI to Outstation Bank)
INR 350 + GST for Ist Cheque (Local Branch) |
INR 50 + GST | https://goo.gl/rWzT3c |
| HDFC | INR 500 + GST (for Inadequate Balance)
INR 350 + GST (Cheque Return Due to Fund Transfer) |
INR 50 + GST | https://goo.gl/DmGteS |
| Axis | INR 500 + GST (for Inadequate Balance) | – | https://goo.gl/pkxGL7 |
| Kotak Mahindra | INR 500 + GST (for Inadequate balance) | – | https://goo.gl/yXSSL5 |
| Bank of Baroda | INR 250 +GST (Cheque Amount Less than 1 lakh )
INR 500 + GST (Cheque Amount Between 1 lakh to 1 Crore) INR 750 + GST (Cheque Amount Greater than 1 Crore) |
INR 250 + GST | https://goo.gl/bcxHQK |
