IBA says banks not ready yet for GST implementation on July 1

New Delhi: While corporate India awaits July 1 2017 to get a first-level dekko of GST, the Indian Banks Association (IBA), an umbrella organization of banks in India, has already approached a Parliamentary panel expressing that banks may not be ready yet for GST.

According to the IBA, banks are anticipated to make several changes to their systems and processes in order to make GST operational. The IBA in fact mentioned that the preparedness of banks on July 1 is a “question mark”.

The IBA had previously also suggested that it would undertake the responsibility of being the centralized GST collector for the banks. However, the plans are yet to be worked out between banks, the IBA and the government.

The immediate impact of GST from a personal finance perspective is a matter of concern. The tax slab on banking, insurance, investments such as real estate, and mutual funds has been placed at 18%, a 3% hike over the previous 15%.

There has been speculation with thoughts that the government may postpone the GST implementation date to 1 September with concerns over the readiness of the GSTN (GST Network), the IT framework

[Copyright By Sairaj Iyer]