Keeping money in the bank is expensive, your money will be charged on GST

BTNEWS Dec 6, 2018

Water is not sold in the country, clean air is also being sold. That is, almost nothing is not free. Accounts opened in the bank of almost all the citizens of the age group of 18 years and above. Those who did not have accounts, opened an account in this greed that the government of Prime Minister Narendra Modi would make money in their account.

credit: third party image reference

The Modi government's five-year tenure is about to complete. In the accounts of the account holders, the Modi government does not put money, but in turn, it is in the process of collecting money from the account holders.

Indeed, banks invite people to open separate bank accounts separately. Some services are given free on every account. The condition for this is that the account holder maintains the minimum balance in the account. The tax department of the government wants to recover the indirect tax on these free services. In this, the basis of calculation of GST can be the amount, which take the bank from the customers who do not maintain the Minimum Account balance.

The tax department issued preliminary notices to the banks regarding this. Due to this, the bank's check book, additional credit card, additional use of ATM, on fuel refund surcharge may be 18% on Goods and Services Tax (GST) on a monthly or quarterly basis. This notice is different from April's notice. Among the notices issued in April, the demand for Rs 40 thousand crore was made from all banks in the form of service tax and penalties.

credit: third party image reference

The hardship for the account holders is that considering the minimum balance of the account, they will be able to repay the tax on 'free services' provided by State Bank of India, ICICI Bank, HDFC Bank, Punjab National Bank and Axis Bank. Preparing to put the burden on the account holders only.

The Indian Banks Association (IBA) says, "Most banks are thinking of putting the burden of GST on customers. The bank will not keep any money from the customers who will recover from the name of GST, the money will be given directly to the government. "

credit: third party image reference

Tax experts say that in April, some clarifications had come to the banks after issuing service tax notice. Despite this, the notice has been sent to the banks now. PWC India Tax Leader says that the industry had put its point in front of the Finance Ministry. In GFA's FAQ, it was believed that in lieu of maintaining Minimum Account Balance, services which are offered free to the customers, they can not get GST.

However, a senior executive of Deloitte India says that if the tax was imposed on the banks, then this could increase the cost of many categories of customers. In other areas, it can also be the basis of this. Significantly, most of the big banks have agreed to collect 18 percent GST on free services given to customers.

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