Journal Press India®

Goods and Services Tax on Financial Institutions: A Comparative Study of India with Select Developed Countries

Vol 8 , Issue 1 , January - June 2021 | Pages: 54-76 | Research Paper  

 
Article has been added to the cart.View Cart (0)
https://doi.org/10.17492/jpi.vision.v8i1.812104


Author Details ( * ) denotes Corresponding author

1. * Rupal Chhaya, Student, Department of Law , Symbiosis Law School, Hyderabad, Telengana, India (rupal.chhaya1999@gmail.com)
2. Srishti Sneha, Student , Department of Law, Symbiosis Law School, Hyderabad , Telengana, India (srishti.sneha@student.slsh.edu.in)
3. Anisha Routray , Student , Department of Law, Symbiosis Law School, Hyderabad , Telengana, India (anisha.routray@student.slsh.edu.in)

Goods and services tax in India has been a concept which is still at its toddler stages while in nations such as Australia, New Zealand, and Canada, the taxation system has been in place for more than a decade or two. There remains to be no ambiguity in the taxing system in those countries. With financial institutions forming the backbone of an economy, it is essential to see how it is taxed. In the present paper, the authors undertake a study of these institutions and their taxing in India, Australia, Singapore and New Zealand. We would see how the concept of zero GST or taxing on the financial sector in the aforesaid developed countries acted as a simulator for boosting the economy. Unlike in India, we have zero GST only on essential commodities which restricts our investments opportunities to a large extent.

Keywords

Goods and services tax (GST); Financial institutions; India, Australia; New Zealand; Singapore.

  1. A New Tax System (Goods and Services Tax) Regulations 2019. (2021, Apr 28). Retrieved from www.legislation.gov.au: https://www.legislation.gov.au/Details/
  2. Arora, M. (2020, May 22). RBI reduces Repo Rate by 40 bps, extends moratorium for 3 months. Retrieved from https://cfo.economictimes.indiatimes.com/news/rbi-reduces-repo-rate-by-40-bps-lockdown-impact/75883308
  3. Banking services. (n.d.). Retrieved from https://www.cbic.gov.in/htdocs-servicetax/st-profiles/banking-finl-services
  4. Bhanje, S. B. (2018). Indian financial system: Historical implication and modern development. Review of Research, 7(5), 1-4. Retrieved from http://oldror.lbp.world/ UploadedData/10087.pdf
  5. Business. (2019, Jan 24). Retrieved from https://timesofindia.indiatimes.com/business/faqs/gst-faqs/gst-rates-for-various-goods-and-services-in-india/articleshow/  60871754.cms#:~:text=TAX%20SLAB%3A%20No%20tax%20(0,%2C%20prasad%2C%20salt%2C%20bindi
  6. Claiming Input Tax Incurred to Make Exempt Supplies. (2021, May 2). Retrieved from https://www.iras.gov.sg/irashome/GST/GST-registered-businesses/Working-out-your-taxes/Can-I-claim-GST/Claiming-Input-Tax-Incurred-to-Make-Exempt-Supplies/#:~:text=Generally%2C%20input%20tax%20incurred%20in,input%20tax%20on%20exempt%20supplies.
  7. Dave, S. (2018, Nov 30). GST on banks' 'free services' may be passed on to customers. The Economic Times. 
  8. Examining GST implications for the Financial Services Industry. (n.d.). Retrieved apr 27, 2021, from www.wolterskluwer.com: https://www.wolterskluwer.com.sg/gst-and-the-financial-markets article/#:~:text=Financial%20services%20are%20exempted%20 from,was%20difficult%20to%20tax%20them.&text=GST%2Dregi
  9. GST and financial supplies. (2021, Apr 28). Retrieved from www.ato.gov.au: https://www.ato.gov.au/Business/GST/In-detail/Your-industry/Financial-services-and-insurance/GST-and-financial-supplies/
  10. Impact of GST on Banks and NBFCs. (2021, Jan 5). Retrieved from https://cleartax.in/s/impact-gst-banks-nbfcs
  11. India interest rate. (2021, April 28). Retrieved from https://tradingeconomics.com/ india/interest-rate
  12. India investment nominal gdp. (2021, April 28). Retrieved from https://www.ceicdata.com/en/
  13. India Total Deposits. (2021, May 1). Retrieved from https://en/indicator/india/total-deposits
  14. India/loan-growth. (n.d.). Retrieved from https://tradingeconomics.com/india/loan-growth
  15. Khan, M. S. (2015). The role of financial institutions and the economic growth: A literature review. International Institute for Science, Technology and Education, 7(1), 95-98. 
  16. Kumar, G. (2015, Oct 21). what-are-the-financial-institutions-and-its-types. Retrieved from https://www.jagranjosh.com/articles/-1445412421-1
  17. McMahon, M. A. (2000). GST and financial supplies. Journal of Australian Taxation, 3(3). Retrieved from http://www.austlii.edu.au/au/journals/JlATax/2000/12.html
  18. Muraleedharan, D. (2014). Modern banking: Theory and practice (2nd ed.). PHI Learning.
  19. Pradhan Mantri Jan-Dhan Yojana (PMJDY). (2021, April 29). Retrieved from pmjdy.gov.in/: https://pmjdy.gov.in/about
  20. Reserve Bank India Act. (2021, May 1). Retrieved from https://www.incometaxindia.gov.in/pages/acts/reserve-bank-india-act.aspx
  21. Sitt, R. (2001). An overview of how GST impinges on the financial services sector in Australia and New Zealand. The Tax Specialist, 4(555), 236-246. Retrieved from https://data.allens.com.au/pubs/pdf/tax/gstfeb01.pdf
  22. The Central Goods and Services Tax Act, 2017. Retrieved from http://gstcouncil.gov.in/sites/default/files/CGST.pdf
Abstract Views: 32
PDF Views: 1

Advanced Search

News/Events

Institute of Managem...

Deccan Education Society Institute of Management Development and Re...

S.B. Patil Institute...

Pimpri Chinchwad Education Trust's S.B. Patil Institute of Mana...

D. Y. Patil IMCAM, A...

D. Y. Patil Institute of Master of Computer Applications & Managem...

Vignana Jyothi Insti...

Vignana Jyothi Institute of Management International Conference on ...

Department of Commer...

Department of Commerce, Faculty of Commerce & Business, University...

Birla Institute of M...

Birla Institute of Management Technology (BIMTECH) 3rd Pritam Singh M...

OP Jindal University...

OP Jindal University, India 4th International Conference on  ...

Department of MBA, N...

Department of MBA, Narayana Engineering College Nellore International...

Vignana Jyothi Insti...

Vignana Jyothi Institute of Management Conference Proceedings,...

Online Proceedings R...

Conference Proceedings, March 2023 ISBN: 978-81-956810-6-8 ...

By continuing to use this website, you consent to the use of cookies in accordance with our Cookie Policy.