IBA Reaches Out to GST Parliamentary Committee, says Banks are Not Ready of GST

The July 1st deadline for GST roll out is less than a month away from now. At this juncture Indian Banks’ Association (IBA) has informed a Parliamentary panel that Indian banks are not yet geared up for implementation of GST.

“Since the GST will be operational from July 1, 2017, banks have to make 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.

The IBA further said that several services by banks to customers are centralised while several others are localised. Banks will have to make changes in the existing infrastructure which would be a huge challenge for the banks.

The IBA had taken up the case for central registration, the association added. Touted as the biggest taxation reform since independence, the GST will subsume central excise, service tax, VAT and other local levies to create a uniform market.