Do you have to pay GST for all transactions in a current account ?This is a
very important concept which every business owner in India needs to understand.
A transaction in your current account is a distinct thing, and GST is a very different thing.
GST is applicable on your sales and purchases of any product or service where
it is transaction in your business A current account transaction is important for the
economic activities of your business.So GST is not applicable on every transaction of your current account. However, the bank will levy GST only when it provides you with any product, service,
charge or fee which is chargeable.
Suppose you deposited some money to invest in your business so you don’t have to pay
GST on that.But if you do an online transfer of a big amount from your home branch using
RTGS through the branch channel, then you have to pay charges of the bank + GST. But you didn’t have to pay charges on the amount you have transferred using the branch channel. In this way you can understand that GST is not applicable on any transaction in your current account.
But you need to calculate GST on your sale at purchase and need to pay this tax on
your own to the government of India.The government of India will not even deduct GST
from your current account directly; you have to calculate and submit the GST amount to the government.
So, it is highly recommended to take help from a good practising CA or CA firm to understand
the concept of GST to answer all your questions related to GST.
Conclusion on Do you have to pay GST for all transactions in a current account ?
So from today onwards, please remember that GST is applicable on the sale and purchase of
your product or service, not on transactions in your current account.
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