Revenue department rejects panel's GST waiver demand on co-lending

In May 2024, the Department of Financial Services had asked SBI to set up a co-lending committee to address issues related to its business model

The Department of Revenue has rejected a recommendation by a panel led by State Bank of India (SBI) to remove 18 per cent goods and services tax (GST) on activities related to co-lending among commercial banks and non-banking financial companies (NBFCs), according to a senior government official.

 

“We will explore other approaches to address this matter,” the official said.

 

In May last year, the Department of Financial Services had asked SBI to set up a co-lending committee to sort out issues related to its business model.

 

“While examining the matter, it was seen there were several types of agreements between