GST on Services of Business Facilitator (BF) or a Business Correspondent (BC) to Banking Company
Clarification is given on the following 2 issues are:
1. Value of services by BF/BC to a banking company – The banking company is liable to pay GST on the entire value of service charge or fee charged to customers whether or not received via business facilitator or the business correspondent
2. The scope of services by BF/BC to a banking company with respect to accounts in rural areas – The procedure for classification of branch of a bank as located in rural area and the services which can be provided by BF/BC, is governed by the RBI guidelines.
