IMPACT OF GST GOING TO OCCURE ON BANKING AND FINANCIAL SERVICE SECTORS

The Government of India is going to take a historical step towards tax structure. Total tax collection of government may be increased but the tax payer may have some less tax burden and very easy tax structure than complex nowadays. The new structure is implemented in whole of India except Jammu and Kashmir on 14th June 2016. With the implementation of GST a moderate increase in the cost of financial services such as loan processing fees, debit/credit card charges, insurance premiums, etc. is expected. Under GST, effective tax rate on fee-based transactions is expected to increase to 18-20%.