Good News for ATMs
The government has given great relief to those who take money from ATMs. Those who take money from ATMs do not have to pay tax. Because the withdrawal of ATM from the ATM has been excluded from the GST. Along with this, services such as checkbook insurance have also been excluded from the GST scope. But the credit card will charge GST on the late charge and the NRI on buying an insurance policy.
The Department of Revenue has clarified in this regard by issuing “FAQ’s (FAQ)” regarding the implementation of GST on banking, insurance and stock broker services. The Department said that transactions related to securitization, derivatives and futures transactions have also been excluded from the GST scope.
The Department of Financial Services had contacted the Revenue Department in this regard last month. Jain, partner and leader (indirect tax) in PwC, said that FAQs are very important because the financial services from GST are considered to be the most complex. Last month, the finance department had asked the Revenue Department to get ATM transactions out of GST after the banks received service tax notice from their customers.