ALSO READPAN number must for excise, service taxpayers for GST registration Banks not yet prepared for GST roll-out: Indian Banks' Association HP, KPMG launch 'GST Solution' to help traders, MSMEs move into GST regime Under GST, moving Rs 50k goods to need online registration, e-way bill Negotiating the transitory pangs
The government on Monday ruled out centralised registration for banks under the Goods and Service Tax (GST) and has mandated separate registration for each state they operate in. Banks have been demanding a single centralised registration system, like at present, as they feel multiple registrations would create procedural and compliance problems. "They have no choice. They have some issues relating to registration which will be resolved in due course," said a top finance ministry official. At a meeting of finance ministry with the heads of public sector banks here today, a separate session was held on issues related to GST. "We have eased some of their problems. GST will be rolled out as per schedule from July 1," the official said. Currently, banks, as well as non-banking finance companies (NBFCs) with pan-India operations, can discharge their service tax compliances through a single 'centralised' registration.
But under GST, they would need to obtain a separate registration for each state where they operate.But they have been allowed to submit a single invoice per state per month instead of multiple invoices for each transaction. The GST Council has fixed an 18 per cent tax rate under GST for financial services. Currently, these services are taxed at 15 per cent and the hike in the tax rate means that individuals will have to pay Rs 3 more for every Rs 100 paid for banking transactions.