News Details

( 16 May 2018)
Free banking services to remain out of GST ambit: Official

A senior finance ministry official has said that free banking services like cheque book issuance and ATM withdrawals is likely to remain out of the ambit of the GST.

As per reports, the Department of Financial Services had approached its revenue counterpart to clear the confusion over the levy of Goods and Services Tax (GST) on some of the free services offered by banks to their customers

Commenting on the issue, an official told the media, "The revenue department is likely to tell the financial services department that GST will not be levied on free banking services."

Amid banks getting service tax notice for non-payment of the levy on free services, the Department of Financial Services (DFS) had approached the revenue department seeking clarity on whether such services would attract GST.