Banking company can avail ITC on the premium paid to DICGC

THE AUTHORITY OF ADVANCE RULING

The Question and Ruling as follows:

The applicant is engaged in the business of banking as a Regional Rural Bank. It accepts deposits from its customers. It is statutorily required to pay a premium to Deposit Insurance and Credit Guarantee Corporation (In short “DICGC) on these deposits, on which GST is collected by the DICGC. Now the bank is availing and intends to continue to avail credit of GST paid, as prescribed under respective GST Acts, as it is an inward supply for its banking business. To avoid any future litigation, the bank now seeks advance ruling, whether input credit of GST on this inward supply is just and proper under the GST law?

RULING