GST on Services of Business Facilitator (BF) or a Business Correspondent(BC) to Banking Company.
11\/2019\/GST Dated:- 31-1-2019 Andhra Pradesh SGST
GST – States
Government of Andhra Pradesh
\nCommercial Taxes Department
\nProceedings of the Chief Commissioner of State Tax (FAC), Andhra Pradesh
\nPresent: Sri.J.SyamaIa Rao, I.A.S.
\nOffice of the
\nChief Commissioner of State Tax,
\nEdupugallu,Vijayawada
\nCircular No. 11\/2019\/GST
\nCCTs Ref.in CCW\/GST\/74\/2015
\nDt. 31.01.2019
\nSubject: GST on Services of Business Facilitator (BF) or a Business Correspondent(BC) to Banking Company- reg.
\nRepresentations have been received seeking clarification on following two issues:
\n(i) What is the value to be adopted for the purpose of computing GST <\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rging any fee to the customers for services rendered by them on behalf of the bank. On the other hand, banks (and not BCS) are permitted to collect reasonable service charges from the customers for such service in a transparent manner. The arrangements of banks with the Business Correspondents specify the requirement that the transactions are accounted for and reflected in the bank's books by end of the day or the next working day, and all agreements\/ contracts with the customer shall clearly specify that the bank is responsible to the customer for acts of omission and commission of the Business Facilitator\/Correspondent. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rovided by BF\/BC is dependent on the meaning of the expression “accounts in its rural area branch”. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST on Services of Business Facilitator (BF) or a Business Correspondent(BC) to Banking Company.11\/2019\/GST Dated:- 31-1-2019 Andhra Pradesh SGSTGST – StatesGovernment of Andhra Pradesh Commercial Taxes Department Proceedings of the Chief Commissioner of State Tax (FAC), Andhra Pradesh Present: Sri.J.SyamaIa Rao, I.A.S. Office of the Chief Commissioner of State Tax, Edupugallu,Vijayawada Circular No. 11\/2019\/GST CCTs … Continue reading “GST on Services of Business Facilitator (BF) or a Business Correspondent(BC) to Banking Company.”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-17296","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/17296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17296"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/17296\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\n2.3 Hence, banking company is the-service provider in the business facilitator model or the business correspondent <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n3.1 It is clarified that for the purpose of availing exemption from GST under Sl. No. 39 of said notification, the conditions flowing from the language of the notification should be satisfied. These conditions are that the services provided by a BF\/BC to a banking company in their respective individual capacities should fall under the Heading 9971 and that such services should be with respect to accounts in a branch located in the rural area of the banking company. The procedure for classification of branch of a bank as located in rural area and the services which can be provided by BF\/BC, is governed by the RBI guidelines.
\nTherefore, class<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n