𝗖𝗘𝗦𝗧𝗔𝗧 𝗠𝘂𝗺𝗯𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗮𝗻𝗱 𝗣𝗿𝗲𝗺𝗶𝘂𝗺 𝗖𝗼𝗺𝗽𝘂𝘁𝗮𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗕𝗮𝗻𝗸 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗿𝘂𝗹𝗲𝗱: “Consideration includes the tax amount, and liability is to be computed on the ‘cum tax’ value, as banks under RBI’s supervision cannot be charged more than the specified premium amount.”

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Deposit Insurance & Credit Guarantee Corporation (DICGC) 𝗜𝘀𝘀𝘂𝗲: The Deposit Insurance & Credit Guarantee Corporation (DICGC), insuring banks against financial instability, faced an audit objection on service tax calculation for premiums from 2011-2013. DICGC claimed tax was included in premiums, and a refund was approved in 2016.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal upheld that service tax liability for DICGC must be absorbed within the RBI-specified premium on a "cum tax" basis. Banks cannot be charged extra, and complex premium calculations confirm no tax adjustment is required. Appeal dismissed.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Commissioner of CGST & Central Excise vs. Deposit Insurance & Credit Guarantee Corporation 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗣𝗣𝗘𝗔𝗟 𝗡𝗢: 86306 OF 2021 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 14 July 2023 📜 This ruling confirms that service tax for regulated premiums is to be computed on a cum tax basis, without additional recovery from client banks.