Commissioner Of Gst And Central Excise vs M/S Citibank N.A

insc-2024-808 Supreme Court of India 16 October 2024 • Civil Appeal No. 8228; CIVIL APPEAL NO. 8228 OF 2019; CIVIL APPEAL NO. 89 OF 2021 • 4 min read

Judges (3)

R. Mahadevan Coram Sanjay Kumar Coram Sanjiv Khanna Delivered

Parties (2)

Citibank N.A. Respondent Commissioner of GST and Central Excise Appellant

Case Significance

Commissioner Of Gst And Central Excise vs M/S Citibank N.A is a Supreme Court of India decision dated October 16, 2024 (citation: insc-2024-808). The Revenue challenged whether the issuing bank (Citibank) must separately pay service tax on the interchange fee component of the Merchant Discount Rate (MDR) in credit card transactions. The Supreme Court held that service tax is not separately payable on the interchange fee since service tax on the entire MDR had already been paid by the acquiring bank, and there was no loss of revenue to the government. The bench comprised Justices R. Mahadevan, Sanjay Kumar and Sanjiv Khanna. The judgment was delivered by Justice Sanjiv Khanna.

Summary

The Revenue challenged whether the issuing bank (Citibank) must separately pay service tax on the interchange fee component of the Merchant Discount Rate (MDR) in credit card transactions. The Supreme Court held that service tax is not separately payable on the interchange fee since service tax on the entire MDR had already been paid by the acquiring bank, and there was no loss of revenue to the government.

What was the outcome of Commissioner Of Gst And Central Excise vs M/S Citibank N.A?

The Revenue challenged whether the issuing bank (Citibank) must separately pay service tax on the interchange fee component of the Merchant Discount Rate (MDR) in credit card transactions. The Supreme...

Judgment

Read the full judgment on the official India Courts portal.

Read on Indian Kanoon

Source: Indian Kanoon (insc-2024-808)