The Government has turned down the banks’ appeal to have centralised registration under GST for banks and has mandated state-wise registration for each state wherein the bank operates. The banks are concerned that multiple registrations would cause compliance and procedural issues.
At present, banks as well as NBFCs can file their service tax compliances through a single, centralized registration system across India however, under GST a separate registration would be needed for each state.
The Government is steadfast on rolling out GST come July 1 even though a few issues would remain related GST registration. A top finance ministry official said, “They have no choice. They have some issues relating to registration, which will be resolved in due course.”