sir / madam,
input claim on bank charges, is correct or not
8 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 12 March 2024
@ Gaddala Ramesh,
Yes, ITC can be avail if Your business supplies are Taxable.
Yes, ITC can be avail if Your business supplies are Taxable.
Money Money
(413 Points)
Replied 13 March 2024
Certainly! Let’s discuss Input Tax Credit (ITC) on bank charges under the Goods and Services Tax (GST) regime.
Applicability of GST on Bank Charges:
Banks offer various services to their clients, such as processing loans, custodian services, RTGS/NEFT payments, and foreign exchange remittance services.
These service fees, including bank charges, fall under the GST scope and are eligible for ITC if used for business purposes.
However, since these charges are not explicitly listed on the bank statement, taxpayers often neglect to claim ITC1.
Exemptions and Place of Supply:
Some financial services are exempt from GST, as specified in Notification No. 12/2017 - Central Tax (Rate). These include credit card services, interest on deposits, services by the Reserve Bank of India, and payment and settlement services.
The place of supply for bank services depends on the customer’s location. If an Indian customer receives services from a foreign bank, the place of supply depends on the bank’s location. Charges for such services are not subject to GST1.
Claiming ITC on Bank Charges:
Under the GST, any expense incurred while conducting business and related to selling taxable goods or services may be adjusted as ITC.
Section 17(5) of the CGST Act does not prohibit claiming ITC on bank charges.
Although banks do not provide tax invoices for these charges, the bank statements you receive are considered legitimate documents for claiming ITC on GST for bank charges
Applicability of GST on Bank Charges:
Banks offer various services to their clients, such as processing loans, custodian services, RTGS/NEFT payments, and foreign exchange remittance services.
These service fees, including bank charges, fall under the GST scope and are eligible for ITC if used for business purposes.
However, since these charges are not explicitly listed on the bank statement, taxpayers often neglect to claim ITC1.
Exemptions and Place of Supply:
Some financial services are exempt from GST, as specified in Notification No. 12/2017 - Central Tax (Rate). These include credit card services, interest on deposits, services by the Reserve Bank of India, and payment and settlement services.
The place of supply for bank services depends on the customer’s location. If an Indian customer receives services from a foreign bank, the place of supply depends on the bank’s location. Charges for such services are not subject to GST1.
Claiming ITC on Bank Charges:
Under the GST, any expense incurred while conducting business and related to selling taxable goods or services may be adjusted as ITC.
Section 17(5) of the CGST Act does not prohibit claiming ITC on bank charges.
Although banks do not provide tax invoices for these charges, the bank statements you receive are considered legitimate documents for claiming ITC on GST for bank charges
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 13 March 2024
Don't Confuse querist...
It's very bad example to post a full length paragraph of laws...
Give solution based on queries...
Which banker's not issued invoice...???
If they can't give then we can raise complaint...
Money Money
(413 Points)
Replied 13 March 2024
Don't comment if you can't give an appropriate answer. Anyway, you like to enter into the lives of others and you don't like it if someone gives you a solution. These portals are there to solve queries and not to debate with you.
mind it
mind it
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 13 March 2024
Yes minded.
But, solution is better reply.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 20 March 2024
| Originally posted by : sabyasachi mukherjee | ||
 |
No input tax credit on bank charges |  |
Hello Mr Expert.,
Please avoid such uneducated activities
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