GST and its impact on YOU!

[Lord Nemesis]

Its more of a practicality question. In earlier times, earning interest was an incentive provided to get people to put their money into the banks, but now with all the money already forced into banks , there is no way banks will be able to pay interest and neither do they need to. Also consider that most of the banks are in near bankruptcy situation and your money simply going to be used to fill their holes and allow them to issue more bad loans to politically connected people like Vijaya Mallya.

With regard to bank charges, I am not sure how many people know that SBI has started taxing withdrawals beyond a monthly quota of 4. For example, if you need to withdraw Rs 50,000, you will need to pay Rs 50 transaction charge and Rs 9000 GST @ 18% on the entire amount. So to get Rs 50,000 of your own money, you need to pay Rs 9050 to the bank.

 

[swatkats]

With regard to bank charges, I am not sure how many people know that SBI has started taxing withdrawals beyond a monthly quota of 4. For example, if you need to withdraw Rs 50,000, you will need to pay Rs 50 transaction charge and Rs 9000 GST @ 18% on the entire amount. So to get Rs 50,000 of your own money, you need to pay Rs 9050 to the bank.

Whaat? Isn't it Rs 50+ GST? Flat?


https://www.sbi.co.in/portal/docume...2017.pdf/0ec3339b-20af-4a9d-b805-219aef520425

 

[toocool6600]

Its more of a practicality question. In earlier times, earning interest was an incentive provided to get people to put their money into the banks, but now with all the money already forced into banks , there is no way banks will be able to pay interest and neither do they need to. Also consider that most of the banks are in near bankruptcy situation and your money simply going to be used to fill their holes and allow them to issue more bad loans to politically connected people like Vijaya Mallya.

With regard to bank charges, I am not sure how many people know that SBI has started taxing withdrawals beyond a monthly quota of 4. For example, if you need to withdraw Rs 50,000, you will need to pay Rs 50 transaction charge and Rs 9000 GST @ 18% on the entire amount. So to get Rs 50,000 of your own money, you need to pay Rs 9050 to the bank.

Are you sure

9000 rs is the number? Is it correct?

I think you are damn wrong son

 

[chetansha]

No bloody way 9000 for with drawing 50k

 

[swatkats]

No offence but looks like dude's still high. Raat ka uttra nahi

 

[toocool6600]

60 rs it should be

 

[NotMyRealName]

If they remove int on deposit s the retired community which depends on int income will be at peril, that's not happening.

Read up on NIRP. It's been done before and with often disastrous results. But in this country, they can do pretty much anything now.[DOUBLEPOST=1498981371][/DOUBLEPOST]

LOL. I think you have no idea about scamgress....

I would genuinely like to know, even roughly, how much congress has scammed in total, and how much the bjp has legally scammed in the guise of taxes and demon and SBC/KKC/XYZ etc.

 

[Lord Nemesis]

No bloody way 9000 for with drawing 50k

http://timesofindia.indiatimes.com/...-expensive-under-gst/articleshow/59350262.cms

Similarly, State Bank of India (SBI) charges Rs 50 plus service tax (15 per cent), for each withdrawal at banks beyond four free transactions. So, currently for withdrawing Rs 10,000, you need to pay a sum of Rs 1,550 ( Rs 1,500 as service charge plus Rs 50). Under GST, this transaction will attract a service charge of Rs 1,850.

From what I have read, the ST/GST is on entire amount. For Rs 10,000 withdrawal, Rs 1500 is charged as ST. Now its 1800 with GST

 

[NotMyRealName]

Since yesterday, I've been to shops and hotels who make turn over in crores. They have no Fcking clue what goes from where to where.
Govt has failed miserably to educate retailers or dealers about GST. There are fears of hiring CA which would blasts their bills and these Crook CA for monthly filing are asking huge amounts such as Rs 3000/month minimum.

This is exactly what i was thinking. They keep talking about input tax credit. But if it's complicated and convoluted then nto many would be able to successfully claim it. Moar free money for acche din party ![DOUBLEPOST=1498981605][/DOUBLEPOST]

http://timesofindia.indiatimes.com/...-expensive-under-gst/articleshow/59350262.cms



From what I have read, the ST/GST is on entire amount. For Rs 10,000 withdrawal, Rs 1500 is charged as ST. Now its 1800 with GST

Wait, what ?? !!

I didn't know withdrawing your own money from your bank account incurred taxes?

 

[Lord Nemesis]

Also, not many people seem to be yet aware that GST is now applicable for home loans taken towards under construction property. Per my understanding, home loans did not have ST till now even though other kinds of loans had it.

So, apart from paying 12% GST on the flat/house cost to the builder, you now also need to pay 18% GST on the interest amount you pay to the bank. For example, if you buy 50 lac flat, you have to pay 6 lac to the builder as GST. In addition if you have a 40 lac loan @ 8.35% for 20 years and paying EMI or Pre-EMI on it, then the interest part of it say 34,792 will have 18% GST i.e. Rs 6262 each month.

 

[chetansha]

Also, not many people seem to be yet aware that GST is now applicable for home loans taken towards under construction property. Per my understanding, home loans did not have ST till now even though other kinds of loans had it.

So, apart from paying 12% GST on the flat/house cost to the builder, you now also need to pay 18% GST on the interest amount you pay to the bank. For example, if you buy 50 lac flat, you have to pay 6 lac to the builder as GST. In addition if you have a 40 lac loan @ 8.35% for 20 years and paying EMI or Pre-EMI on it, then the interest part of it say 34,792 will have 18% GST i.e. Rs 6262 each month.

should be noted that home, auto and personal loan EMIs will not go up. Service tax is not levied on them so they will not be taxable under GST, an SBI official said. However, some one-time cost like loan processing fee and prepayment charges etc will go up nominally as they attract service tax.


http://m.ndtv.com/india-news/atm-withdrawals-loan-emis-after-gst-what-you-need-to-know-1719145

 

[Lord Nemesis]

^^The proposal was to start levying GST on home loan interest too with the introduction of GST. ST was not applied earlier. Unless the govt decided to back out from it at last minute, GST is applicable on the interest for under construction property loans. There were several news items on this subject since April. With the kind of confusions and last min changes that govt kept doing, I am no more sure if this has changed now.

 

[toocool6600]

http://timesofindia.indiatimes.com/...-expensive-under-gst/articleshow/59350262.cms



From what I have read, the ST/GST is on entire amount. For Rs 10,000 withdrawal, Rs 1500 is charged as ST. Now its 1800 with GST

So anything written on toi is the truth and no sense should prevail?

 

[NotMyRealName]

I had a discussion with a friend and we came to the conclusion that the 18% GST would be applied only on the bank service charge, not the entire amount. So if you make 4 free withdrawals of 10k, and the bank charges you 100 bucks on the 5th withdrawal of 10k, you will be charged 18 rupees GST.

 

[Lord Nemesis]

So anything written on toi is the truth and no sense should prevail?

Sense is a rarity in all the things that the govt and banks have been doing these days. I too would have expected the taxes to be applicable only on the transaction fee, but with the present situation, I do not know anymore.

The goal of banks like SBI which are in bad shape these days seems to be to put charges on anything and everything and secondly restrict people from using their money and they are using the Govt order to all banks asking them to discourage cash transactions as their reasoning. Given that context, if the newspaper is saying that they are taxing the entire transaction amount, then I would be inclined to believe that unless somebody actually went through this and can confirm that it is not the case.

 

[bigbyte]

The proposal was to start levying GST on home loan interest too with the introduction of GST

Any reliable source? I'm sure it's all thin air or whatsapp news network. The processing charge levied by bank to sanction the loan may be brought under GST, not the entire interest amount.

 

[chetansha]

Any reliable source? I'm sure it's all thin air or whatsapp news network. The processing charge levied by bank to sanction the loan may be brought under GST, not the entire interest amount.

This has been cleared up. No point discussing again.
See my post with link

 

[Marcus Fenix]

What the hell???
https://www.buzzfeed.com/sahilrizwan/darth-modi?bfsource=bbf_enin&utm_term=.baXyM0Ln2#.uaR9dwRA7

 

[Lord Nemesis]

Any reliable source? I'm sure it's all thin air or whatsapp news network. The processing charge levied by bank to sanction the loan may be brought under GST, not the entire interest amount.

The processing charge will obviously come under GST since it already had service tax being charged on it. There is nothing new about that.

However there were several news items Apr/May period and also discussion on real estate forums to the effect that GST laws will also bring taxes on the EMI itself which was not there earlier. The details were ambiguous at the time. However it looks like that plan may have been dropped or put on hold for a future date.

http://www.business-standard.com/ar...der-construction-property-117032800679_1.html

 

[NotMyRealName]

Had my first negative effect of GST. 2nd in total.

1. Yesterday bought some groceries from a big hyper market. I was surprised that almost everything, including the packaged buns i bought were tax free. I thought it was only for loose items. One packaged meat item i bought was charged GST 6+6%.

2. Today ordered food online via Foodpanda. The restaurant previously didn't apply tax separately, some other places did, so i'm assuming their prices were tax inclusive. Well today's bill had the old prices with additional GST of 9+9%. This should have been earlier price minus earlier tax rate plus GST. When i asked them they said they didn't have anything to do with it, Foodpanda has taken that tax amount. So basically in the confusion, some parties are making hay...

Call this teething troubles or whatever, bottom line is my pocket is being pinched unnecessarily. I don't care about what party does what, but I do care about who is ripping me off...