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Whether IGST or CGST/ SGST is payable for trading of PSLC by the banks on e-Kuber portal of RBI

The Government of India (“GOI”) vide its Circular No. 93/12/2019 – GST dated March 08, 2019 which clarifies the nature of Supply of Priority Sector Lending Certificates (PSLC) by bank on E-Kuber portal of RBI.
Earlier it was clarified vide Circular dated September 12, 2018 that GST on PSLCs for the period July 01, 2017 to May 27, 2018 will be paid by the seller bank on forward charge basis and GST rate of 12% and after May 27, 2018 the levy of GST on PSLC trading on reverse charge basis to be paid by the buyer bank.
However, now it is clarified that nature of supply of PSLC between banks may be treated as a supply of goods in the course of inter-State trade or commerce. Accordingly, IGST shall be payable on the supply of PSLC traded over e-Kuber portal of RBI for both periods i.e July 01, 2017 to May 27, 2018 and from May 27, 2018 onwards.


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