This is about the GST impact on the banking sector.

7.  The banking sector is one of the largest services sectors in
India. The implementation of the Goods & Services Tax
(GST) will likely prove to be a challenge for the sector on
two counts - First, due to the higher GST rates compared to
the current service tax rate and second, due to the vast
geographical reach of most banks.
 With the GST coming close on the heels of demonetization,
the banking sector needs to ensure that they are ready for this
new tax regime.

11. NEFT Fees Before
GST
Fees After GST Difference
Less than 10000 Rs 2.50 Rs 2.80 30 paisa
Above 10000 Rs 5.75 Rs 6.25 50 paisa
Less than 2lakh Rs 17.18 Rs 17.90 72 paisa
2lakh to 5lakh Rs 28.6 Rs 29.5 Rs 1.2

12. IMPS Fees Before GST Fees after GST Difference
Less than 1lakh Rs 5.75 Rs 6.25 50 Paisa
1lakh to 2lakh Rs 17.18 Rs 17.90 72 Paisa
2lakh to 5lakh Rs 28.6 Rs 29.5 Rs 1.2

13. RTGS Fees before GST Fees after GST Difference
2Lakh to 5Lakh Rs 28.6 Rs 29.5 Rs 1.2
5lakh to 10lakh Rs 57.25 Rs 59 Rs 1.75

16.  Section 25 of the Model Law requires uploading of invoices on
Goods and Services Tax Network (GSTN) by 10th of the next
month.
 It means wherever the recipient of service wants to avail input tax
credit, each and every document, where under certain fee or
commission or charges have been charged and on which GST is
levied, is required to be uploaded electronically on the GSTN by
the service provider.
 It is a fact that banks do not issue commercial invoices for every
service rendered.
 It would practically be a very difficult task to issue invoices for
such small amounts and uploading them on GSTN.

19. Bank will be able to set off their GST liabilities against credit received on purchase of goods.
Under the existing CENVAT mechanism, banks are eligible to take partial credit of excise duty and
service tax paid on procurement of qualifying goods and services which are used for provision of output
service but under GST law bank will take input tax credit which would be used by bank for payment of
output liability.
Banks do not get input tax credit of State VAT paid on any goods procured by them. As all these
indirect taxes will be subsumed in GST, banks will be able to take credit of GST paid on procurement of
goods as well.
GST Will help to reduce tax evasion. Under GST doing business will be easy. The increase in
business will lead to additional demand of funds. Addition demand of funds will lead to increase
in a number of transactions in the bank as the business and current scenarios ask to go for digital
transaction.

20.  Based on the current scenario that the government had imposed 18% GST slab on the
Banking industry is totally absurd.
As per this Memorandum enacted by the FM Arun jaitely is really unethical as per the
Customer point of view because earlier they were paying 15% service tax and now from the
they Would pay 18% of all the services they have availed from the Bank.
From the bank point of view also this GST never be a good for them because already they
were dealing with the NPA’s and after demonetization there is another problem come
across.
 The banks have to maintain separate books of account of all the branches located in the
different geographical location.

21.  On the basis of findings we have came across the various suggestion that we would like to
Share from you, as we all know the NDA government implemented the GST on 1st July 2017
And give much more emphasis on this because it will be helpful for the people. And it is good
for the people that the government levied 12% on the domestic consumption but on the other Hand the
people were paying 6% more to the other services that is related to the banking.
 During the demonetization the government gave much importance to the digital transaction
and people were being so zeal to do so.
 But as they imposed 18% GST slab on the banking sector the people have to pay more for
the services they are availing from the bank. If the people tend to do digital transaction he
have to pay 3% more as per the GST slab.
 Prior to imposed this GST slab on the banking sector a government should be first think about the
people because already there is an inflation and after implementation of this GST, there will be more
expenditure.