By the Way

By the way : RBI in GST cauldron

VOL. 12 | ISSUE 7 | OCT 2018

Reserve Bank of India not pay GSTWHAT do you do when the central bank of the country, that is the Reserve Bank of India, and other leading banks don’t pay the GST to the government. The matter becomes all the more puzzling when the Ministry of Finance pays no heed and instead keeps the issue in abeyance. The issue is very simple. The RBI collects funds in Government of India 8 per cent Savings Bonds from the public by appointing sub-agents through agency banks. Payment of commission of 1 per cent to the sub-agents through agency banks came under Service Tax regulations and the RBI agreed to pay the Service Tax to the agency banks. After implementation of GST, GST credit should also be available to agency banks from the RBI. However, most agency banks have held back commission payments and GST of their agents, with a plea of seeking a clarification from the RBI, which in turn has asked for clarifications from Ministry of Finance. The matter is still pending and unresolved for last six months. The non-reimbursement of GST to sub-agents is leading to 84.59 per cent payment of commission. Further, the non-payment of commissions within 30 days is again violating the RBI circular. Moreover, it is learnt that ICICI Bank is charging additional 9 per cent of GST i.e. paying 91 per cent inclusive of GST, in gross violation of RBI circular and terms of appointment of agents and sub-agents. The Secretary Finance has to take a call to resolve this problem, of what is clearly a simple office procedure. gfiles end logo

Post Comment

Most Popular

To Top
LATEST ARTICLES
close slider
VOL.14 | ISSUE 1 | MARCH-APRIL 2020
CORRUPTION
FROM RAJ TO RAFALE 18: Loose Sheets, Diaries & Spreadsheets
COVER STORY
COVID19 : Cosmic Dance, Worldly Trance
COVER STORY
COVID19 : Systems Failure, Situation Critical
COVER STORY
COVID19 : The Economic Roulette Wheel
COVER STORY
COVID19 : Winds Of Change
STATE SCAN
Jyotiraditya Scindia : Overrated Turncoat
BOOK REVIEW
A Life in Secret
Bric-a-brac
Fighting for Central Hall
Bric-a-brac
Sick, and struggling
Bric-a-brac
Hooda, Tulsi in Rajya Sabha
Bric-a-brac
North and South faceoff
By the way
Yogi : No time for UP IAS week
By the way
Petronet largesse
BY THE WAY
Tackling Covid
BY THE WAY
Listing blues