Most banks now charge transaction fees on cash withdrawals from various bank ATMs or on branch cash withdrawals . So, banking transactions such as credit card payments, fund transfers, ATM transactions, loan processing fees, etc., for which banks charge fees, higher tax rates would apply. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the Original Essay GST and Loans Let's take a look at the issue of GST and its impact on borrowing. The view is that there would be a marginal increase in costs at the points where GST comes into play, for example in the case of a personal loan, service tax in the old tax regime was levied on the fees processing and prepayment fees, the latter are expected to increase. but not at levels that would cause concern. For example, the processing fee, according to the lender, was charged at 1-2% of the loan and this fee would attract a service tax of 15%, which would now stand at 18%. A marginal increase in the cost of borrowing also applies to home loans, auto loans and personal loans. GST and Mutual Funds The impact of GST on mutual funds will be minimal. The GST levy will be on the total expense ratio (TER), which is the measure of costs incurred by a mutual fund company in operating its mutual funds. The TER rate is expected to increase by 3%.GST and insuranceBe prepared to pay a little extra on your insurance premiums. Insurance companies charge service tax on term and health insurance products, as well as on late payment of insurance premiums, and these fees are expected to increase from 15% to 18%. However, some insurance schemes such as Aam Admi Bima Yojana, Pradhan Mantri Jeevan Jyothi Bima Yojana are exempt. Now let's look at the changes that banks themselves must undergo as part of the GST rollout. Registration of Bank Branches Banks having branches in different states have to register in each state and this will come under the service tax compliance of that respective state. You only need to register once for multiple branches in each state. This will increase compliance, reduce pressure on documentation and help ensure seamless integration of accounts across different states. Service tax for inter-branch services. Banks continually provide services to each other, which are also taxable under GST. However, the tax can be claimed as input credit for additional compensation. GST Input Tax Credit Keep in mind: This is just a sample. By paying a tax on the output you produce, you can reduce the tax you have already paid on inputs. Input tax credit is not allowed under the current tax structure. Under the GST regime, the input tax credit may be offset against the taxes payable by the bank on overseas deliveries. However, they must maintain separate books of accounts to monitor all input tax credits and utilized and unutilized credits...