Banks may soon charge you for free services,

In a new update; Banks like SBI, HDFC, PNB and other may levy 18% GST on free services to costumers such as issue of cheque book, ATM cards, Credit Cards and Cashbacks. It come after a notice sent to Banks from tax department to levy tax on such services.

The Banks were giving these free services to customers who were maintaining a minimum balance.

Income tax department claims that free services have a “deemed value” equivalent to the charges paid by customers who do not maintain such a balance and are, therefore, liable to tax.