Investigating the impact of Goods and Service Tax (GST) on the banking sector with reference to selected banks in India
Investigating the impact of Goods and Service Tax (GST) on the banking sector with reference to selected banks in India

Summary/Abstract: The banking sector is one of the main sectors of our economy and generates huge revenue income. India is a nation with impressively splendid banks with ample resources and rules and regulations that are well-regulated. GST, i.e. Goods and Service Tax, a new tax regime launched at midnight on 1 July 2017, is one of the biggest transformations faced by the industry during this time. GST is a replacement to the VAT system. Tax rate on banking services have been increased in the present system. This study seeks to understand the problems faced by the banking sector and their impact on customers following the introduction of the GST. By abolishing the centralized registration of banks, the new tax regime has taken an unprecedented measure. All bank branches now have to register for smooth functioning in each state under GST. This research study emphases on the challenges faced by the banking sector on the introduction of GST and the implications for improving the rules, wherever required. This study helps the effect of GST on the banking sector to be understood by detailing the problems and advantages of GST. The perception of banking employees on the GST impact on the banking is undertaken through questionnaire. Areas of improvements which can be made in the GST sector are analysed.

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