Singapore's DBS Bank takes government, GST Council to court on IGST issue

Singapore's DBS Bank takes government, GST Council to court on IGST issue

SINGAPORE : Singapore's DBS Bank has taken the Indian government and Goods and Services Tax (GST) Council to the Delhi High Court after the Council asked to pay integrated GST (IGST) on banking services provided by the bank to its head office in Singapore, according to a report in The Economic Times.

The Delhi High Court has admitted a writ petition filed by the Bank that challenges certain sections of the IGST and has asked the government and the GST Council to reply. The case will be heard on November 7.

The division bench comprising Justice S Muralidhar and Justice Pratibha Singh admitted the petition.

Senior lawyers Abhishek A Rastogi and Rashmi Deshpande will be appearing on behalf of the bank.

DBS Bank, however, declined any comment.

Currently, foreign banks are paying 18 percent GST on all services they provide to their respective head offices based outside India.

Abhishek Rastogi told the newspaper, "Unlike under the service tax regime, all foreign banks are now burdened with an 18 percent IGST on various services rendered to their head offices outside India when the place of provision of the services is outside of India".

Source::: Money Control, dated 29/09/2017.