WebAnswer (1 of 6): It depends on who is making profit out of the chit fund. The foreman surely has to pay the GST as he always gains in a Chit Fund. The subscribers who get funds … WebJul 5, 2024 · CHENNAI: As the Union government increased the GST on chit fund services from 12 per cent to 18 per cent, the All India Association of Chit Funds are against it. The members pointed out that this implementation will impact the middle -class people where they will be forced to borrow money at an interest rate of 60 per cent per annum.
GST HS Code and rates for 9971 Serach GST hs code and tax rate
WebAug 11, 2024 · In the government’s recent announcement of revised rates of GST, the tax that chit fund services attract has been raised to 18% from the earlier 12%. WebProvided that credit of input tax charged on goods used in supplying the service has not been taken [Please refer to Explanation no. (iv)] 1/01/2024 13/10/2024 1/07/2024. 12% 18% 18% 12%. 997119. Other Financial Services (Except Investment Banking, Insurance Services And Pension Services) 12/18. iphone black screen spinning wheel why
Is your income from chit funds taxable? - The Hindu
WebSo, if the maximum discount is INR 25,000, the prize money of INR 75,000 will be received by the winner. The discount amount, INR 20,000, is distributed equally amongst all the … In India, chit funds can only be created after receiving the express sanction of the respective state governments. These funds are regulated under the Chit Funds Act 1982. This act allows the ‘foreman,’ i.e., the manager of a chit fund, to charge a maximum commission of 7% of the total chit amount received. … See more The applicable HSN code for chit funds is Heading 9971: Financial and related services. Per the latest recommendation by the 47th GST Council meeting, the GST rate on chit fund commission has been raised from … See more But it is now believed that after the proposed GST rate hike to 18%, the chit fund companies will raise their commission to the maximum prescribed limit of 7% under the Chit Funds Act. Going back to the previous … See more To better understand the impact of the rate hike of GST for chit funds, let’s consider a hypothetical situation. Assume a chit fund consists of 40 members who contribute about Rs.25,000 per month. This means the cyclical … See more Under Heading 9971, ‘Financial and related services,’ services provided by the foreman in relation to the chit fund business attract an 18% GST. However, this rate is applicable subject to the condition that no … See more iphone black screen iphone 13