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Refundable interest free deposit can be treated as supply and chargeable to tax in the hands of the applicant

Shanti Prime Publication Pvt. Ltd.

Supply — The applicant is multi-state Schedule Co-operative Bank registered with the department of GST and is also holder of Registration certificate. The applicant is providing various services to respective account holders which were chargeable to Service Tax under the erstwhile provisions of Service Tax Act and now under the provisions of Goods and Service Tax Act, 2017. The Applicant sought advance ruling on various questions in respect of its services. The Authority ruled out that the monetary value of the act of providing refundable interest free deposit is the consideration for the services provided by the RNSB and therefore the services provided by RNSB can be treated as supply and chargeable to tax in the hands of the applicant; the amount of Rs. 2500/- will not attract the GST but the monetary value of the act of providing this deposit will attract GST. — Rajkot Nagarik Sahakari Bank Ltd., In Re… [2019] 12 TAXLOK.COM 106 (AAR-Gujarat)