Now all the Bank users could be asked to pay tax for every ATM withdrawal and every cheque they issue!
The entire banking sector in India is now in confusion over a this major question as to Who will pay for banking services such as ATM withdrawals and cheques?
The reason for this question popping up now is because the decision by Directorate General of Goods and Services Tax Intelligence (DGGST) concerning ‘free’ banking services.
Looking at the way banks are responding to this new tax directive can change so many things for the consumers, and for the entire banking industry.
What does this mean for the consumer?
As per report, the Directorate General of Goods and Services Tax Intelligence (DGGST) has contacted all leading banks and asked them to pay tax on the ‘free services’ offered by them to customers.
This tax has been pending for 5 years and they have been asked to pay now with Show Cause notice being issued against banks.
“Some notices have been issued and some are in the process of being issued. All banks taking these charges would be show caused..”
And now all the banks seems to have woken up and got into huddle and are wondering how to collect this tax from consumers. And if they are not able to collect, they will need to pay it.
Some source’s indicate that banks will appeal against this new form of taxation.