CBIC has released an Updated FAQ on GST on financial Services as on December 27, 2018

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The Central Board of Indirect Taxes and Customs (“CBIC”) has issued updated 91 FAQs on applicability of GST on financial Services, i.e., related to banking, insurance and stock brokers sector as on December 27, 2018.
Some of the gist of key highlighted point which cover under the following FAQs are:-
  • For stock broking services GST is not leviable on interest/ delayed payment charges charged to clients for debit for settlement obligations/ margin trading facility since settlement obligations/ margin trading facilities are transactions which are in the nature of extending loans or advances and are covered by entry No. 27 of notification No.12/2017- Central Tax (Rate) dated June 28, 2017.
  • Bank / insurer can defer the availment of input tax credit for the month of September following the end of financial year to which relevant invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier.

Complete FAQ can be accessed at:http://www.a2ztaxcorp.com/wp-content/uploads/2018/12/cbic-issues-updated-91-faqs-on-applicability-of-gst-on-financial-services-as-on-december-27-2018.pdf