Delhi and NCR based urban cooperative banks have, generally-speaking, welcomed the new tax regime of Goods and Services Tax but a few of the cooperative leaders have found it being implemented in too great a hurry.
Rajeev Gupta, Chief Executive of Indraprastha Sahakari Bank is happy with the implementation of new tax i.e. Goods and Services Tax and says it will drive the country’s economy forward.
“I welcome the decision and successful implementation of GST (One Nation One Tax) by the Narendra Modi government for the people of country”, he said to this correspondent.
GST will not affect the cooperative banking system because prior to this there was 15 percent service tax and now 18 percent the difference being a mere 3 percent, Gupta said.
”We have informed our valuable members as well as account holders of this small change in service charge through SMS,” the Chief Executive of one of the leading UCBs in NCR said.
Indraprastha Sahakari Bank is the leading cooperative bank of the Delhi-NCR region and had attracted attention during demonetization for serving its customers well. The bank with 5 branches earned a net profit of about one crore with a business mix of 300 crore in the last financial year i.e. 2016-2017.
Chairman of Jamia Cooperative Bank, MQH Beg also shared his views on the implementation of GST. He said “the decision of Narendra Modi’s government was correct but its implementation was too hasty. It has had some adverse effects. The Government should have implemented it after September”, Beg said.
”We organized several seminars to educate the members of the bank and also held several meetings with team of experts to tackle the situation. Earlier there was only 15 percent tax but now 18 percent GST will definitely affect, Beg said.
Jamia Cooperative Bank with 8 branches in the Delhi-NCR region earned a gross profit of 5.5 crore with a business mix of more than 350 crore in the last financial year.
