Srinagar: J&K Bank has been authorized to collect Goods & Services Tax (GST) across the country. In this regard, Reserve Bank of India (RBI), in a communication informed the bank about the authorization for collection of Goods & Services Tax (GST) as the agent of RBI.
As per the RBI letter, the authorization was extended after the recommendation of the Department of Financial Services, Ministry of Finance (GoI).
Commenting on this Chairman and CEO Parvez Ahmad said, “We welcome the RBI decision primarily for the reason that we shall be able to serve people better especially our customers by facilitating the collection of GST across the country. Earlier our customers had to deposit these taxes with other authorized banks.”
“Also the decision would positively reflect upon our incomes as we shall be earning commission from RBI on the taxes collected under GST”, he added.
The chairman acknowledged the support and guidance of Finance Minister Dr Haseeb Drabu and the central government for reposing their confidence in the bank.
Acting as the agent of RBI, the bank already has the mandate to collect the direct taxes which has now been extended to indirect taxes as well according to this latest RBI communiqué.