After 1 July 2017, service tax is changed to 18% from 15% because of GST implimentation. India’s biggest bank State Bank of India (SBI) increased service charges on there all service.
All services include such as debit card, home loan processing fee, locker rentals, issuing of cheque books, cash handling charges, and SMS alerts would attract higher tax rates under GST.
“Banks are not in the position to absorb the increase in costs due to GST. It will be a small hike for customers. There will be an increase in costs for us except for the interest cost on deposits. Hence, banks will pass it on,” said a senior SBI official.
How GST Impact SBI customers?
SBI has revised their service charges on withdrawing money from an ATM through State Bank Buddy to Rs 25 plus
Fund transfer from SBI Buddy to your savings bank account will charge you 3% plus taxes,
All saving bank accounts holder will get eight free ATM transactions (5 at SBI ATMs and 3 at other ATMs) in metros and for non-metros 10 free transactions (5 at SBI ATMs and 5 at other ATMs).
IMPS Fund Transfers:
IMPS fund transfer will now charge Rs. 5 plus tax for amounts of up to Rs. 1 lakh,
Rs. 15 plus tax for above Rs. 1 lakh and up to Rs. 2 lakh,
and Rs. 25 plus tax for above Rs. 2 lakh and up to Rs. 5 lakh.
Charges on ATM cards:
New card will be charged from 1st June, only RuPay classic card will be issued for free.
Exchange of Notes:
If someone want to Exchanging notes more than 20 or if total value of notes is above Rs. 5,000, now bank will charge Rs. 2 plus tax for every note.
If customers wants cheque book now you have to pay Rs. 30 plus GST for a 10-leaf cheque-book,
Rs. 75 with GST for 25-leaf cheque-book and
Rs. 150 plus tax for a 50-leaf cheque-book.