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FINANCIAL AND RELATED SERVICES
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GST Applicability
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Interest
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Exempt (Not exempt supply, no reversal of ITC required)
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Service charges or administrative charges recovered in addition to
interest on a loan, advance or a deposit
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Taxable
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Penal charges for delayed payment of EMI
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Taxable
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Cheque bouncing charges
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Taxable
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Services provided to account holders under Jan Dhan Yojana
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Exempt
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Assignment or sale of debt
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Not Taxable
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Sale, purchase acquisition or assignment of secured debt
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Not Taxable
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Interest on Gold (metal) loan
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Taxable
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Dividend, loans, borrowings, profit distribution among partners
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Not Taxable
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Invoice discounting or cheque discounting
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Not Taxable
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Financial Leasing
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Taxable
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Chit fund services
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Taxable
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Insurance services
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Taxable (some exemptions are available)
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Business Facilitators (BF) Service
Banking company located in taxable territory is liable to pay GST
under reverse charge in respect of services provided by BF
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Taxable
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Business Correspondents (BC) Services
In case of BC, they themselves are liable to pay GST. BC are also
liable to pay GST under reverse charge in respect of services provided by an
agent of BC to them.
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Taxable
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If the branch of bank is located in rural area as pe RBI guidelines
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Exempt
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Stockbroker services
GST is payable on brokerage but not on stamp duty and securities
transaction tax recovered from customer.
GST is not payable on delayed payment charges
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Taxable
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Renting for commercial purpose
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Taxable
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Renting for residential purposes
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Exempt
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Renting for agricultural purposes
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Exempt
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Brokerage services relating to renting of building
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Taxable
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Renting of precincts of a religious place
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Exempt upto Limit
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Upfront amount for long term lease of industrial plots
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Exempt
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One time lease charges
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Taxable
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