GST in Banking Audit.

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GST in Banking Audit.
No GST on Interest levied by bank.
No GST on inter-bank Forex transactions.
GST applicable on all charges levied by Bank.
_GST RCM_ prominently on transactions with
– Laywers
– Recovery Agents
– Transporters
– Taxi (Individual case)
Sponsorship Services
– Security Service (01.01.2019)
_GST TDS_ on all contracts active on 01.10.2018 having a Taxable Value exceeding 2,50,000/- @ 2%. (IGST or CGST/SGST)
_Input Tax Credit_

Option 1.

ITC at 50% of total input tax paid on inward supplies except inter-branch transactions where 100% is allowed.

Option 2.

Total ITC – ITC on non-business, Non-taxable & blocked credit inward supplies – ineligible ITC of exempted portion of common credit – 5% of common credit.
Mostly Banks r exercising 1st option. But where Auditor can be of the view that other alternate may have resulted lesser liability, Auditor can raise the note of it.

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