The banking industry is covered by the erstwhile service tax law and same was levied on the service provided by the banking sector to its customers until the introduction of Goods & Service Tax Act. In this article we would like to explain the important GST provisions relating to the major services offered by the banking industry to its customers.
Chargeability : Now a days banking industry provides wide range of services to its customers. It includes traditional banking services, insurance agency services, mutual fund agency services and many more . The most of the services come within the ambit of levy of GST and few services are being given exemption by way of notification.