GST rates: Financial services transactions to become marginally dearer (2024)

FAQs

GST rates: Financial services transactions to become marginally dearer? ›

Mumbai: Tax on financial services transactions will rise from the current 15% to 18% as the goods and services tax (GST) kicks in on 1 July, making them marginally costlier.

All financial supplies are input-taxed sales and do not have GST in their price and GST credits can't be claimed. Financial supplies are input-taxed sales and do not have GST in their price. You generally make a financial supply when you do any of the following: Lend or borrow money.

Under GST, all goods and services transacted in India are classified under the HSN code system or SAC Code system. Goods are classified under HSN Code and services are classified under SAC Code. Based on the HSN or SAC code, GST rates have been fixed in five slabs, namely NIL, 5%, 12%, 18% and 28%.

GST on gold purchase in India attracts 3% GST (1.5% CGST + 1.5% SGST) rate on the value of gold.

Transaction in money where consideration is represented by Interest is supply under GST but the same has been exempted from the purview of GST through exemption notification. So currently there is no GST on Interest income on fixed deposit. Hope it helps!

Under GST, three types of taxes can be charged: SGST and CGST for intra-state transactions, and IGST for interstate transactions. Determining transaction type is key. The IGST act defines inter/intrastate transactions based on the place of supply rules.

The GST Calculator operates based on a straightforward formula: GST Amount = (Selling Price x GST Rate) / 100.

Gold coins are prepared in various denominations ranging from 0.5 grams to 100 grams. Are there any making charges for gold coins? Yes. The making charges for gold coins generally ranges between 3 to 11 percent.

Reality: While GST is not applicable on interest on loans, it is applicable on Credit Card EMI payments. It is applicable to both the EMI interest component as well as processing fee charged when converting a transaction into EMI.

How do you treat GST on fixed assets? ›

When fixed assets are purchased a certain amount is paid towards GST. Any amount paid towards GST can be claimed as a credit in the same way as input tax. If depreciation is charged on GST then one can't claim tax input credit.

Bank fees, such as monthly account fees, ATM fees, and credit card interest, are not subject to GST.

As required in AASB Interpretation 1031 Accounting for the Goods and Services Tax (GST) (AASB Interpretation 1031), the net amount of GST recoverable from, or payable to the Australian Taxation Office (ATO), shall be included as part of a receivable or payable in the statement of financial position.

Under the GST Act, financial supplies are input taxed. This means that no GST is charged on the financial supply and that the financial supply provider is not entitled to any input tax credits for any GST included in the price of anything acquired or imported to make the supply.

Payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Balance Sheet.

Income tax payable is a liability reported for financial accounting purposes. It shows the amount that an organization expects to pay in income taxes within 12 months. It is reported in the current liabilities section on a company's balance sheet.