Banking sector plays a very crucial role in a macro economic and monetary policies of any country overall framework and the business dynamics of this sector largely differs from other sectors. The regulatory framework for this sector is very strong and leaves no room for any discrepancies. Banking sector is with multiple technologies, regulatory and demographic factors cutting across the length and breadth of the value chain. Banks are the largest financial sector in India. The landscape of India’s financial sector is changing widely. Banking adopted in differentiated channels and technology could help in a multi-fold increase of reach in rural and remote areas. Goods and service tax for the financial services sector would be a major transformation as it would have an impact on the financial product, the information technology system, processes and a shift from centralized compliance to the state wise compliance. This article lay down various issues that a Banking sector may face due to advent of GST and the suggestions so as to amend the rules, wherever required to be address the negative impact of GST on the Banking sector. GST may come into expanding the cost of the saving money and budgetary administrations. Numerous compliance issues may likewise emerge with the use of GST while the banking sector suggests that GST must not cover monetary and manage an account administrations. One might say that collection of GST on banking and finance sector will be excessively testing. Subsequently, GST will emerge as transformative stride, changing the entire taxation arrangement of India.
