INTRODUCTION GST :

"Banking and Other Financial Services" means-

(a) the following services provided by a banking company or a financial institution including a non-banking financial company or any other body corporate or [commercial concern], namely :

(i) financial leasing services including equipment leasing and hire-purchase;

(ii) such contract is for use and occupation of the asset by the lessee;

(iii) the lease payment is calculated so as to cover the full cost of the assettogether with the interest charges; and

(iv) the lessee is entitled to own, or has the option to own, the asset at the end of the lease period after making the lease payment;

(ii) Omitted

(iii) merchant banking services;

(iv) securities and foreign exchange (forex) broking, and purchase or sale of foreign currency, including money changing;

(v) asset management including portfolio management, all forms of fund management, pension fund management, custodial, depository and trust services.

(vi) advisory and other auxiliary financial and portfolio research and advice, advice on mergers and acquisitions and advice on corporate restructuring and strategy;

(vii) provision and transfer of information and data processing; and

(viii) banker to an issue services; and

(ix) other financial services, namely, lending, issue of pay order, demand draft, cheque, letter of credit and bill of exchange, transfer of money including Income Tax Return form are governedtelegraphic transfer, mail transfer and electronic transfer, providing bank guarantee, overdraft facility, bill discounting facility, safe deposit locker, safe vaults, operation of bank accounts;";

(b) foreign exchange broking and purchase or sale of foreign currency including money changing provided by a foreign exchange broker or and authorised dealer in foreign exchange or an authorised money changer, other than those covered under sub-clause,We are Leading GST Consultants in chennai,Bangalore and Delhi Contact us

GST Rate:

GST rates will apply to some banking transactions, mutual funds, insurance and stock market where there is a supply for consideration. So in following cases GST would be levied

• In banking transactions such as credit card payments, fund transfer,ATM transactions, processing fees on loans etc., where the banks are levying charges, tax rate of 18% would apply.

• GST will now apply to exit loads charged by mutual funds (MFs).

• the GST will also be applicable on default in payment of loan installments and credit card dues, Insurance policies for NRIs.

• GST is levied on the processing charges and any other charges paid to the bank excluding the principal repayment and interest payment. These other charges include theLoan Processing Fees, Loan Prepayment Charges and other charges, if any. Mentioned below are the important loans and their GST rates:

-Personal Loan– 18%

-Home Loans– 18%

-Car Loan– 18%

• Mutual fund distributors earning up to Rs20 lakh will remain exempt from GST, while those earning more will pay GST at the rate of 18%.

• A GST of 18% would be levied on the 3 types of life insurance :

-Term insurance plans- basic life insurance policies

-ULIPs–insurance and investment under a single integrated plan

-Endowments (including money-back)- life insurance policies that pay a lump sum on maturity/death or a fixed sum every month (sort of like a pension)

• General insurance includes fire insurance, marine insurance, car insurance, theft insurance etc. The GST rate will also be 18% on general insurance, We are Leading GST Consultants in chennai,Bangalore and Delhi Contact us