India is witnessing many changes from actions taken at the centre. Some are good while some have not received good opinions from the public. One such change is the introduction of the GST. Each sector of the Indian economy has been affected in some way or the other by GST. An analysis has been made here on the effects of GST on the banking sector. GST or the Goods and Services Tax have brought many good tidings for the banking sector.
Filing Returns through Websites
Banks such as the ICICI Bank, the Axis Bank and DCB have offered companies the option of filing GST returns on a monthly basis through websites. By this facility, corporate invoices and cash flows can be monitored by banks. The credit appraisal systems can be enhanced and new clients can be accessed. The service offered by banks, has been utilized mostly by small and medium enterprises which have now accepted internet banking and are cautiously accepting the GST regime.
Statistics have proved that DCB has about 5 lakh customers who are mostly self-employed. These services are an additional services provided by banks and banks expect customers to make use of these facilities. The charges for such services have been charged on customers. DCB bank has made charges for its service at Rs. 250/month and each bank has its own way of charging for their services. Banks state that those with higher balances can make use of this service at a lower cost. Banks will soon be looking into new packages to provide these services with corporate services, so that they can get additional benefits through these services. It will also help them to detect non-KYC complying accounts. Filing returns has to be developed by customers. This can be developed only when customers feel comfortable with filing returns and getting credit appraisals. Filing tax returns has to become a habit by individuals, entrepreneurs, companies and corporate.