A Study on Impact of GST on Banking Industry

Veerla Sai Sravani, T S Poornachandrika · International Journal of Research Publication and Reviews · 2024

The implementation of Goods and Services Tax (GST) has brought significant changes to the banking industry in India, impacting various aspects of operations and customer experiences.This study investigates the multifaceted effects of GST on banking, drawing insights from survey data and statistical analyses.Findings reveal that while a majority of respondents Favor GST for its comprehensive coverage and transparency, challenges such as increased compliance costs and complexities in inter-branch transactions have emerged.Despite initial hurdles, banks have adapted to GST, leveraging its benefits like input tax credits and improved online transactions.However, concerns regarding higher tax rates on banking services persist, affecting customer satisfaction.Suggestions include revisiting tax rates to enhance customer happiness and educating the public on GST to streamline processes.Overall, the study highlights the transformative impact of GST on the banking sector, underscoring the need for ongoing adjustments to optimize outcomes.

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