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The CBIC has said that GST will not be implemented if banks and non-banking financial companies (NBFCs) levy punitive fees. The Central Indirect Taxes and Customs Board (CBIC) also made it clear through a circular that GST will not be imposed on the transaction of up to Rs 2,000 with the help of agargeators on the online stage.
New Delhi. The CBIC has said that the Goods and Services Tax (GST) will not be implemented on levying punitive fees of banks and non-banking financial companies (NBFCs). The Central Indirect Taxes and Customs Board (CBIC) also made it clear through a circular that GST will not be imposed on the transaction of up to Rs 2,000 with the help of agargeators on the online stage. Explaining the issue of GST being implemented on imposing punitive fees of banks and NBFCs, the CBIC said that the RBI regulates the institutions.
Their punitive fees are imposed on violating the terms of the contract, and therefore GST will not apply to them. The CBIC said, “According to the recommendation of the 55th GST Council, it is clarified that no GST is payable on the punitive fee levied by regulated institutions for not complying with the physical conditions of the borrower.” Rajat Mohan, senior partner of Associates, said that this explanation is important, as it will settle the interpretation disputes.
Disclaimer: Prabhasakshi has not edited this news. This news has been published from the feed of PTI-language.
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