Only a month for GST to be in effect and the Indian Banks’ Association (IBA) has informed the Parliamentary panel that lenders are not yet geared up for implementation of the new tax ruling.
“Since the GST will be operational from July 1, 2017, banks have to make a lot of changes in their systems and other procedures. The preparedness of all banks for implementation of GST on July 1, 2017, is a question mark,” the IBA has conveyed to the Parliamentary Standing Committee on Finance, reported BI.
The banks will face challenges for incorporating the new changes, the IBA further said that several services by banks to customers are centralised while several others are localised. The IBA had taken up the case for central registration, the association added.
The GST will absorb central excise, service tax, VAT and other local levies to create a uniform market. The new indirect sales tax is expected to boost the GDP growth by about 2 percentage points and check tax evasion.