Customers will have to pay more for banking services such as debit card, home loan processing fee, locker rentals, issuing of cheque books, cash handling charges and SMS alerts would attract higher tax rates under GST.
The Narendra Modi-led government implemented the next tax regime earlier this month under which all financial will be taxed at 18 per cent against a service tax rate of 15 percent earlier.
What GST means to SBI customers?
State Bank of India (SBI) has revised service charges on ATM withdrawal for users of its mobile app ‘State Bank Buddy’ effective June 1, according to NDTV.
SBI has said that Rs 25 plus GST will be levied for withdrawing money from an ATM through State Bank Buddy. If you transfer funds from app SBI Buddy to your savings bank account then you have to pay a charge of 3 per cent plus taxes, the public sector lender said in a release.
Online fund transfer through Immediate Payment Service (IMPS) will now be charged Rs 5 plus tax for amounts of up to Rs 1 lakh, Rs 15 plus tax for above Rs 1 lakh and up to Rs 2 lakh, and Rs 25 plus tax for above Rs 2 lakh and up to Rs 5 lakh.
Customers (with Basic Savings Bank deposit) will have to pay Rs 30 along with 18 per cent GST for a 10-leaf cheque book, Rs 75 with GST for 25-leaf cheque book and Rs 150 plus tax for a 50-leaf cheque book.
Charges on ATM cards
SBI said that issuance of new debit cards will be charged from June 1 and only the RuPay classic card will be issued for free. Read More