Automatic Teller Machines now more expensive under GST
Mumbai, July 3: Installing automatic teller machines (ATMs) would be more expensive as ATMs have been placed under the highest tax slab of 28% under the new Goods and Services Tax regime. As the machines are more expensive, smaller banks and newly-licensed small finance banks would slow down or stop installing teller machines, enhancing the problems in the industry. Besides, point-of-sale devices and other digital payments hardware were also put under the 18% slab, the slab in which ATMs shall be included.
Confederation of ATM Industry (CATMI), the business relationship of organisations which convey and oversee ATMs, is wanting to connect with the GST Council, the income secretary and the back service to take up the issue and demand them to change the expense rate on teller machines. “As an industry, we are intending to connect with the administration to bring ATMs comparable to other instalment terminals as generally there will be a general 7-8% expansion on the cost of terminals,” said Ravi Goyal, overseeing executive of AGS Transact Technologies, which conveys and oversees ATMs in the nation.
Likewise, banks favour resource light instalment answers for money related incorporation, as miniaturised scale ATMs and Aadhaar Pay as opposed to sending costly ATMs. In a prior cooperation with ET, Navroze Dastur, MD for India and South Asiaat NCR Corporation, said that they were swapping old machines for banks and not conveying new ones. “We were developing at 15-16% preceding demonetisation which has come down to 8-10%.”
Not just have costs of these machines gone up, even administration taken a toll for ATMs will go up as duty rates have been updated to 18% from 15% already. This would be pertinent for adjusting charges, yearly upkeep contracts which should be borne by the banks in the end. “The greatest preferred standpoint for banks is that now they will have the capacity to guarantee to include assess credit on GST which will enhance their trade streams and assist their business,” said After demonetisation, ATM sending has backed off as banks were engrossed with receiving the most recent computerised instalment instruments.