Banks will need to make registrations in each state separately under the GST law so that they are ready for the new indirect tax regime roll-out from July 1, Revenue Secretary Hasmukh Adhia said on Monday.
“Banks will have to register separately in each state under GST. They do not have any option. That is the law under GST. We will try to ease out any hassles,” he told reporters here after meeting heads of public sector banks.
“Banks have to brace up for the Goods and Services Tax (GST). They can’t say they are not ready.”
Adhia said that among other things the issue of registration under GST was discussed. “At the meeting we sorted out concerns of the banks. We found all solutions for their issues.”
The Revenue Secretary said that whatever issues remain will be sorted out, adding that it was more of an information gap as the bankers may not be aware of all the rules under GST.
“If any small technical issues remain, we will sort out. It’s more of an information gap. They don’t know the correct position of GST Law and Rules. Once we explain the position of law and rules, then it will be easy,” he said.
Moreover, Adhia said that there should be no doubt over the July 1 roll-out date.
“Hundred per cent we are going to roll-out GST from July 1. I don’t know why people are still doubting,” he added.
Bad loans and GST preparedness of banks was discussed among other issues here at the day-long review meeting of public sector banks with Finance Minister Arun Jaitley and other ministry officials.