Is there GST for bank services (& tax codes) ?

1 Answer(s)

Generally, we can split service/product/charge by Bank in 5 categories :

No Type of Bank Charges GST Output Tax Code Input Tax Code Examples
1 Products that involve INTEREST/spread 0% (Exempted Supply) ES EP  
2 FEE based services 6% (Standard rated) SR TX Fees/charges for ATM/MEPS transaction
3 PENALTY/fine on customers for not meeting certain condition 0% (Out of scope)   OP Late payment charges
4 Service for when you are ABROAD or for lands/goods abroad 0% (Zero-rated Supply) ZR ZP  
5 Services/Product that is NOT in the scope of GST 0% (Out of scope)   OP  

Most of the products from the bank are exempted, below is the list summarized from Customs’ Guide

No Bank Products/Services Type GST Input Tax Code
1 Account    
1.1 Interest for various accounts (saving, current, fixed deposit etc) Interest 0% EP
1.2 Fee on ATM cards & account books Fee 6% TX
1.3 Bank Statement Fee 6% TX
1.4 Transaction via ATM/MEPS Fee 6% TX
1.5 Electronic Fund Transfer (EFT) & Phone banking Fee 6% TX
         
2 Credit, Debit, Charge Card      
  Bank VS credit card owner      
2.1 Annual subscription fee Fee 6% TX
2.2 Interest charged for credit Interest 0% EP
  Bank VS Retail Outlet that sells      
2.3 Merchant discount commission Fee 6% TX
2.4 Rental for the usage of payments terminals Fee 6% TX
         
3 Credit facility      
3.1 Standing Instruction services Fee 6% TX
3.2 Overdraft excess fee Penalty 0% OP
3.3 Late payment charges Penalty 0% OP
         
4 Cheque      
4.1 Drawer issue an cheque Out of scope 0% OP
4.2 Bank collect cheque & make payment Out of scope 0% OP
4.3 Third party cheque encashment over the counter Fee 6% TX
4.4 Transferring cheque Fee 6% TX
4.5 Printing cheque books Fee 6% TX
4.6 Commission in clearing cheque Fee 6% TX
4.7 Compensation charge for dishonoured cheque Penalty 0% OP
         
5 Remittance      
5.1 Money transmitting Out of scope 0% OP
5.2 Commission for issuance of cashier’s order & demand draft Fee 6% TX
5.3 Commission on Telegraphic transfer Fee 6% TX
5.4 Tele-transmission Charges Fee 6% TX
         
6 Loan      
6.1 Loan/advance/credit itself Interest 0% EP
6.2 Loan Processing Fee 6% TX
6.3 Establishment / Arranging / Advisory / Agency Fee Fee 6% TX
         
7 Money changing      
7.1 Currency exchange Interest 0% EP
7.2 Service fee for currency exchange Fee 6% TX
         
8 Investment      
8.1 Trading of financial options/futures contract Interest 0% EP
8.2 maintenance services in relation to buying and selling of shares; Fee 6% TX
         
9 Miscellaneous      
9.1 counting coins & currency deposit Fee 6% TX
9.2 prepaid & upload Fee 6% TX
9.3 safe keeping or custodial Fee 6% TX
9.4 services consisting of arranging, broking,
underwriting and advising on any of the financial services
Fee 6% TX

See more details :

 

Answered on July 28, 2015. 2015-07-28 06:36:03
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