Abstract
The banking sector is one of the biggest and revenue generating sector in our economy. Indiais a country with impressively splendid banks with sufficient capital and well-regulated rulesand regulations. One of the biggest transformations that the sector faced during this period isGST i.e., Goods and Service Tax, a new tax regime introduced in the midnight of 1 July2017. Now the new tax regime has become one year old and there are so many changeswhich happened in the banking sector during this one-year periods. Introduction of GST tothe banking sector was one the highly risky and challenging role for the government. GST isa replacement to the Value Added Tax (VAT) which was implied on goods and services. Themain purpose of studying the impact of implementation of GST is to avoid double taxationon goods and services. It is a self-regulated tax system with a simplifies tax regime whichreduces the multiplicity of tax. The purpose of this study is to know the challenges faced bythe Banking sector and its effects on the customers after the implementation of the GST.New tax regime made an incredible step by the abolish of centralized registration of thebanks. Now all the bank branches have to register under GST in each state for the smoothfunctioning. The tax rate has created an impression in the banking sector that the sector iscontributing much toward the economic growth of the country. Tax slabs is anotherimportant and critical thing discussed in this paper which has substantially increasedcompared to the old tax regime. Data for the study have been collected from secondary datasources such as journals, internet, and news articles. Using the ABCD qualitative analysistechnique, advantages, benefits, constraints, and disadvantages for both banks and thecustomers for payment of GST are identified.
Highlights
The paper reflects on the impact of implementation of GST on the banking sector
Under GST tax regime interstate supply of goods and services or both between the same bank's two branches located in two states are taxable which is known as integrated goods and service tax (IGST)
The upshot of the study concludes that GST is a risky and challenging initiative taken by the government for sustainable banking and a uniform tax is imposed on all the products and services. the issues faced by the banking sector a highlighted in this paper in order to understand how challenging the implementation of GST in the banking sector was
Summary
The paper reflects on the impact of implementation of GST on the banking sector It put light on how the tax rates imposed on different products and services of banks and how it affects the customers.GST is playing a vital role in all sectors of the economy and the day to day life of the people. It has been discussed in newspapers from past one year about the changes in the price of the products and tax slabs of GST but still, people are in chaos.
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