GST on financial services: Investors, borrowers should plan finances better

You will now have to pay GST on your credit card dues, on exit fees charged by MF houses and on finance lease

Priyadarshani Maji 

The recently-issued list of FAQs on the goods and services tax (GST) by the Central Board of Direct Taxes (CBDT) gives better insight into the rates applicable on financial services. The good news is that there will be no tax on free services provided by banks, a huge relief for both banks and account holders. However, the government has levied 18 per cent tax on many financial services, making these more expensive.

GST will now apply to exit loads charged by mutual funds (MFs). It will also be applicable on default in payment of loan instalments and credit card dues. Hence, you ...

Note: Subscription will be auto renewed, you may cancel any time in the future without any questions asked.

Total Amount
Rs. 149.00
Requires personal information

What you get?

ON BUSINESS STANDARD DIGITAL

  • Unlimited access to all the content on any device through browser or app.
  • Exclusive content, features, opinions and comment – hand-picked by our editors, just for you.
  • Pick 5 of your favourite companies. Get a daily email with all the news updates on them.
  • Track the industry of your choice with a daily newsletter specific to that industry.
  • Stay on top of your investments. Track stock prices in your portfolio.
  • 18 years of archival data.
  • Requires you to share personal information like date of birth, income, location amongst other fields. This information alongwith your contact information will be shared with the partners associated with this program, who contribute towards subsidizing the offer. By subscribing to this product you acknowledge and accept that our Partners may choose to contact you with offers of their products and services.
  • This is an optional offer - Not comfortable with sharing personal data - please opt for the full price offer which requires you to share minimal information
First Published: Fri, June 15 2018. 00:52 IST