FAQ on GST for Banking Services in India

1. Whether Banks are required to capture the details of ATMs in registration certificate as a ‘place of business’?

Oh, no. When applying for registration, banks are not expected to provide the details of ATMs. For the purposes of registration, the ATM alone does not constitute a place of business as described in the Registration Register CGST, 2017 Act.

2. Is it necessary for banks/ insurers to report the details of exempt and non-GST supplies in Table 8 of GSTR-1?

Yes. In the absence of any specific exemption to the banks/ insurers, the information is required to be provided in the said table.

2. Is a “Bill of Supply” to be issued by a bank for exempt services like interest on loans and advances, inter-se sale or purchase of foreign currency amongst banks?

In compliance with clause (c) of subsection (3 ) of section 31 of the CGST Act, Rule 49 of the CGST Act was read as follows in 2017.

The CGST Rules of 2017 mandate that a bill of supply be provided for the supply of excluded services via banks. However, it should be noted that there is no need to issue a separate supply bill in the event of a separate supply bill.

Any invoice or document in compliance with the rules of any other legislation has already been released.

Furthermore, in view of the provisions found in sub-rule (5) of Rule 54 of the 2017 CGST Rules, banks shall be bound to enforce the provisions of Rule 54 of the CGST Rules.

Any other document may be issued in place of the supply bill.

3. Would services provided by banks to RBI be also taxable?

Yes. Services provided by banks to RBI would be taxable as these are not covered by any of the exemptions or excluded from the purview of GST under the CGST Act, 2017 or under the IGST Act, 2017.

5. Is interest on debt instruments exempt from GST?

Yes. As debt instruments such as debentures, bonds etc. are in the nature of loans, interest thereon will be exempt from GST.