GST on Bank charges and loan processing fees

GST on bank charges and loan processing fees, 26 October 2026: 18%. In some cases the receiver pays the GST under reverse charge (see who pays). The exact rate depends on the entry that fits the supply — read the entries below, each with its notification.

Within a state the GST is split equally: for example 18% = 9% CGST + 9% SGST; between states it is charged as IGST.

GST rate today

Entries in force on 26 October 2026:

• 18% — Other financial and related services not covered by the items above have GST at 18%. (3/2022-CT(R), entry 15(vii), from 18 July 2022)

No GST (exemptions in force)

• Nil — Interest or discount earned on deposits, loans or advances (not credit card interest), and foreign currency trades between banks or authorised dealers, have no GST. (12/2017-CT(R), entry 27, from 1 July 2017)
• Nil — When a bank serves Jan Dhan (PMJDY) basic savings account holders, there is no GST. (28/2018-CT(R), entry 27A, from 1 January 2019)
• Nil — A bank or payment company settling card payments (credit, debit or other card) to a merchant has no GST on transactions up to ₹2,000 each. (12/2017-CT(R), entry 34, from 1 July 2017)
• Nil — When the government guarantees loans that its own undertakings or PSUs take from banks and financial institutions, there is no GST. (28/2018-CT(R), entry 34A, from 1 January 2019)
• Nil — General insurance under listed schemes has no GST. Examples are hut, cattle, crop (PMFBY, weather-based), Janata or Gramin accident, and Jan Arogya policies (see the notification for the full list). (21/2019-CT(R), entry 35, from 1 October 2019)
• Nil — Business correspondents or facilitators serving a bank's rural branch accounts or an insurance company in rural areas, and their intermediaries, pay no GST on that service. (12/2017-CT(R), entry 39, from 1 July 2017)
• Nil — When a financial services intermediary in an IFSC special economic zone serves customers outside India in foreign currency, there is no GST. (2/2018-CT(R), entry 39A, from 25 January 2018)

Who pays the GST (reverse charge)

Reverse-charge entries in force on 26 October 2026 (Notification 13/2017-Central Tax (Rate) and its amendments): the receiver pays the GST instead of the supplier.

• If an individual direct selling agent (not a company, partnership or LLP) provides services to a bank or NBFC, the bank or NBFC pays the GST, not the agent. (15/2018-CT(R), entry 11, from 27 July 2018)
• If a business facilitator provides services to a bank, the bank pays the GST, not the facilitator. (29/2018-CT(R), entry 12, from 1 January 2019)

Period by period since 1 July 2017

Every period between two changes in the notifications, with each rate entry in force for this service in that period. The table further down lists each entry once, with its start and end.

1 July 2017 – 21 August 2017

• 18% — Other financial and related services not covered by the items above have GST at 18%. (11/2017-CT(R), entry 15(v), from 1 July 2017)
• Nil — No GST on services provided by the Reserve Bank of India. (12/2017-CT(R), entry 26, from 1 July 2017)
• Nil — Interest or discount earned on deposits, loans or advances (not credit card interest), and foreign currency trades between banks or authorised dealers, have no GST. (12/2017-CT(R), entry 27, from 1 July 2017)
• Nil — A bank or payment company settling card payments (credit, debit or other card) to a merchant has no GST on transactions up to ₹2,000 each. (12/2017-CT(R), entry 34, from 1 July 2017)
• Nil — General insurance under listed government schemes has no GST — for example hut, cattle, crop, pumpset, Janata accident, Jan Arogya, Rashtriya Swasthya Bima and PM Suraksha Bima. (12/2017-CT(R), entry 35, from 1 July 2017)
• Nil — Business correspondents or facilitators serving a bank's rural branch accounts or an insurance company in rural areas, and their intermediaries, pay no GST on that service. (12/2017-CT(R), entry 39, from 1 July 2017)

22 August 2017 – 12 October 2017

• 18% — Other financial and related services not covered by the items above have GST at 18%. (11/2017-CT(R), entry 15(v), from 1 July 2017)
• Nil — No GST on services provided by the Reserve Bank of India. (12/2017-CT(R), entry 26, from 1 July 2017)
• Nil — Interest or discount earned on deposits, loans or advances (not credit card interest), and foreign currency trades between banks or authorised dealers, have no GST. (12/2017-CT(R), entry 27, from 1 July 2017)
• Nil — A bank or payment company settling card payments (credit, debit or other card) to a merchant has no GST on transactions up to ₹2,000 each. (12/2017-CT(R), entry 34, from 1 July 2017)
• Nil — General insurance under listed schemes has no GST. Examples are hut, cattle, crop (PMFBY, weather-based), Janata or Gramin accident, and Jan Arogya policies (see the notification for the full list). (21/2017-CT(R), entry 35, from 22 August 2017)
• Nil — Business correspondents or facilitators serving a bank's rural branch accounts or an insurance company in rural areas, and their intermediaries, pay no GST on that service. (12/2017-CT(R), entry 39, from 1 July 2017)

13 October 2017 – 24 January 2018

• 18% — Other financial and related services not covered by the items above have GST at 18%. (31/2017-CT(R), entry 15(vi), from 13 October 2017)
• Nil — No GST on services provided by the Reserve Bank of India. (12/2017-CT(R), entry 26, from 1 July 2017)
• Nil — Interest or discount earned on deposits, loans or advances (not credit card interest), and foreign currency trades between banks or authorised dealers, have no GST. (12/2017-CT(R), entry 27, from 1 July 2017)
• Nil — A bank or payment company settling card payments (credit, debit or other card) to a merchant has no GST on transactions up to ₹2,000 each. (12/2017-CT(R), entry 34, from 1 July 2017)
• Nil — General insurance under listed schemes has no GST. Examples are hut, cattle, crop (PMFBY, weather-based), Janata or Gramin accident, and Jan Arogya policies (see the notification for the full list). (21/2017-CT(R), entry 35, from 22 August 2017)
• Nil — Business correspondents or facilitators serving a bank's rural branch accounts or an insurance company in rural areas, and their intermediaries, pay no GST on that service. (12/2017-CT(R), entry 39, from 1 July 2017)

25 January 2018 – 26 July 2018

• 18% — Other financial and related services not covered by the items above have GST at 18%. (31/2017-CT(R), entry 15(vi), from 13 October 2017)
• Nil — No GST on services provided by the Reserve Bank of India. (12/2017-CT(R), entry 26, from 1 July 2017)
• Nil — Interest or discount earned on deposits, loans or advances (not credit card interest), and foreign currency trades between banks or authorised dealers, have no GST. (12/2017-CT(R), entry 27, from 1 July 2017)
• Nil — A bank or payment company settling card payments (credit, debit or other card) to a merchant has no GST on transactions up to ₹2,000 each. (12/2017-CT(R), entry 34, from 1 July 2017)
• Nil — General insurance under listed schemes has no GST. Examples are hut, cattle, crop (PMFBY, weather-based), Janata or Gramin accident, and Jan Arogya policies (see the notification for the full list). (21/2017-CT(R), entry 35, from 22 August 2017)
• Nil — Business correspondents or facilitators serving a bank's rural branch accounts or an insurance company in rural areas, and their intermediaries, pay no GST on that service. (12/2017-CT(R), entry 39, from 1 July 2017)
• Nil — When a financial services intermediary in an IFSC special economic zone serves customers outside India in foreign currency, there is no GST. (2/2018-CT(R), entry 39A, from 25 January 2018)

27 July 2018 – 31 December 2018

• 18% — Other financial and related services not covered by the items above have GST at 18%. (31/2017-CT(R), entry 15(vi), from 13 October 2017)
• Nil — No GST on services provided by the Reserve Bank of India. (12/2017-CT(R), entry 26, from 1 July 2017)
• Nil — Interest or discount earned on deposits, loans or advances (not credit card interest), and foreign currency trades between banks or authorised dealers, have no GST. (12/2017-CT(R), entry 27, from 1 July 2017)
• Nil — A bank or payment company settling card payments (credit, debit or other card) to a merchant has no GST on transactions up to ₹2,000 each. (12/2017-CT(R), entry 34, from 1 July 2017)
• Nil — When the government guarantees loans taken by its own undertakings or PSUs from financial institutions, there is no GST. (14/2018-CT(R), entry 34A, from 27 July 2018)
• Nil — General insurance under listed schemes has no GST. Examples are hut, cattle, crop (PMFBY, weather-based), Janata or Gramin accident, and Jan Arogya policies (see the notification for the full list). (21/2017-CT(R), entry 35, from 22 August 2017)
• Nil — Business correspondents or facilitators serving a bank's rural branch accounts or an insurance company in rural areas, and their intermediaries, pay no GST on that service. (12/2017-CT(R), entry 39, from 1 July 2017)
• Nil — When a financial services intermediary in an IFSC special economic zone serves customers outside India in foreign currency, there is no GST. (2/2018-CT(R), entry 39A, from 25 January 2018)

1 January 2019 – 30 September 2019

• 18% — Other financial and related services not covered by the items above have GST at 18%. (27/2018-CT(R), entry 15(vii), from 1 January 2019)
• Nil — No GST on services provided by the Reserve Bank of India. (12/2017-CT(R), entry 26, from 1 July 2017)
• Nil — Interest or discount earned on deposits, loans or advances (not credit card interest), and foreign currency trades between banks or authorised dealers, have no GST. (12/2017-CT(R), entry 27, from 1 July 2017)
• Nil — When a bank serves Jan Dhan (PMJDY) basic savings account holders, there is no GST. (28/2018-CT(R), entry 27A, from 1 January 2019)
• Nil — A bank or payment company settling card payments (credit, debit or other card) to a merchant has no GST on transactions up to ₹2,000 each. (12/2017-CT(R), entry 34, from 1 July 2017)
• Nil — When the government guarantees loans that its own undertakings or PSUs take from banks and financial institutions, there is no GST. (28/2018-CT(R), entry 34A, from 1 January 2019)
• Nil — General insurance under listed schemes has no GST. Examples are hut, cattle, crop (PMFBY, weather-based), Janata or Gramin accident, and Jan Arogya policies (see the notification for the full list). (21/2017-CT(R), entry 35, from 22 August 2017)
• Nil — Business correspondents or facilitators serving a bank's rural branch accounts or an insurance company in rural areas, and their intermediaries, pay no GST on that service. (12/2017-CT(R), entry 39, from 1 July 2017)
• Nil — When a financial services intermediary in an IFSC special economic zone serves customers outside India in foreign currency, there is no GST. (2/2018-CT(R), entry 39A, from 25 January 2018)

1 October 2019 – 17 July 2022

• 18% — Other financial and related services not covered by the items above have GST at 18%. (20/2019-CT(R), entry 15(vii), from 1 October 2019)
• Nil — No GST on services provided by the Reserve Bank of India. (12/2017-CT(R), entry 26, from 1 July 2017)
• Nil — Interest or discount earned on deposits, loans or advances (not credit card interest), and foreign currency trades between banks or authorised dealers, have no GST. (12/2017-CT(R), entry 27, from 1 July 2017)
• Nil — When a bank serves Jan Dhan (PMJDY) basic savings account holders, there is no GST. (28/2018-CT(R), entry 27A, from 1 January 2019)
• Nil — A bank or payment company settling card payments (credit, debit or other card) to a merchant has no GST on transactions up to ₹2,000 each. (12/2017-CT(R), entry 34, from 1 July 2017)
• Nil — When the government guarantees loans that its own undertakings or PSUs take from banks and financial institutions, there is no GST. (28/2018-CT(R), entry 34A, from 1 January 2019)
• Nil — General insurance under listed schemes has no GST. Examples are hut, cattle, crop (PMFBY, weather-based), Janata or Gramin accident, and Jan Arogya policies (see the notification for the full list). (21/2019-CT(R), entry 35, from 1 October 2019)
• Nil — Business correspondents or facilitators serving a bank's rural branch accounts or an insurance company in rural areas, and their intermediaries, pay no GST on that service. (12/2017-CT(R), entry 39, from 1 July 2017)
• Nil — When a financial services intermediary in an IFSC special economic zone serves customers outside India in foreign currency, there is no GST. (2/2018-CT(R), entry 39A, from 25 January 2018)

18 July 2022 – in force

• 18% — Other financial and related services not covered by the items above have GST at 18%. (3/2022-CT(R), entry 15(vii), from 18 July 2022)
• Nil — Interest or discount earned on deposits, loans or advances (not credit card interest), and foreign currency trades between banks or authorised dealers, have no GST. (12/2017-CT(R), entry 27, from 1 July 2017)
• Nil — When a bank serves Jan Dhan (PMJDY) basic savings account holders, there is no GST. (28/2018-CT(R), entry 27A, from 1 January 2019)
• Nil — A bank or payment company settling card payments (credit, debit or other card) to a merchant has no GST on transactions up to ₹2,000 each. (12/2017-CT(R), entry 34, from 1 July 2017)
• Nil — When the government guarantees loans that its own undertakings or PSUs take from banks and financial institutions, there is no GST. (28/2018-CT(R), entry 34A, from 1 January 2019)
• Nil — General insurance under listed schemes has no GST. Examples are hut, cattle, crop (PMFBY, weather-based), Janata or Gramin accident, and Jan Arogya policies (see the notification for the full list). (21/2019-CT(R), entry 35, from 1 October 2019)
• Nil — Business correspondents or facilitators serving a bank's rural branch accounts or an insurance company in rural areas, and their intermediaries, pay no GST on that service. (12/2017-CT(R), entry 39, from 1 July 2017)
• Nil — When a financial services intermediary in an IFSC special economic zone serves customers outside India in foreign currency, there is no GST. (2/2018-CT(R), entry 39A, from 25 January 2018)

SAC codes under 99711

• 997111 Central banking services
• 997112 Deposit services
• 997113 Credit-granting services including stand-by commitment, guarantees and securities
• 997114 Financial leasing services
• 997115 Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration.
• 997116 Any transfer of right in goods or of undivided share in goods without the transfer of title thereof.
• 997119 Other financial services (except investment banking, insurance services and pension services)

Full rate history

Reverse-charge history

Check a code or a date

• Codes under this service and today's rate per code: SAC code page.
• Any other item or service: GST Rate Finder; tax on an amount: GST calculator.
• How to read the notification yourself: verify a GST rate. The rate on any past invoice date is in the free BooksOn HSN app.

GST on other services

• All services
• Transport charges (goods transport, GTA, freight)
• Cab, taxi and passenger transport
• Rent (rental charges for house, shop, office, land)
• Vehicle hire and rental (with driver)
• Security services (security guards)
• Manpower supply and labour charges
• Legal charges (advocate and lawyer fees)
• Consultancy and professional fees
• Courier charges
• Hotel room charges
• Restaurant bills, food and catering
• Construction and works contract
• Repair and maintenance charges
• Job work charges
• Insurance premium
• Advertising charges
• Event management, pandal and shamiana
• Commission and brokerage

From the BooksOn HSN dataset (version 7), compiled from CBIC notifications since 1 July 2017, checked on 26 October 2026. Reference only: confirm the entry and its conditions in the notification before invoicing.