GST likely on banks 'free' services as they are actually 'charging' clients

Notices under older tax regime likely to be withdrawn but officials say levy's rationale remains as before

The so-called ‘free services’ offered by banks to customers are liable for goods and services tax (GST), officials believe, even as notices sent to lenders for taxing these services under the older regime are likely to be withdrawn.

According to officials, banks are not offering ‘free services’ but actually charging customers by asking them to maintain a minimum account balance. “In business nothing is free. They penalise you for not maintaining a minimum balance because from the interest of that money you maintain, they service you. It is not free. They (say they) give four cheque books a year, free