Term clearing house under GST

Meaning of term clearing house under GST

 

The details about term clearing house are explained here. 

 

Clearing house:

A clearing house is a financial institution organized mostly by banks to exchange cheques ("checks" in American English) and payments. It should not be confused with central counterparty clearing (CCP) which also provides clearing services, but very differently by taking on the settlement risks of the counterparties (member banks and broker-dealers).

Clearing houses were formed to facilitate transactions among banks. Imagine a city with ten banks. Clients of each bank deposit checks daily drawn on any of the ten banks. Those drawn on the same bank as the depositor are easily processed. But cheques drawn on the other banks need to be presented to each bank in order to receive payments. All ten banks might have messengers taking cheques to the others, and waiting for payment. That would be long and cumbersome. Clearing houses solve this problem.

The details about GST rate changes for Clearing and Processing House services are being updated in this website.  The notification changes on exemptions for GST for Clearing and Processing House services and other circulars related to GST for Clearing and Processing House services are updated in this website.

Goods and Service Tax (GST) rate tariff in India is designed in 6 categories of goods and services.  Four main GST rate slabs framed with Essential goods and services, Standard goods and services and luxury goods and services with 5%, 12%, 18% and 28% respectively.  Commonly used Goods and Services at 5%, Standard Goods and Services fall under 1st slab at 12%, Standard Goods and Services fall under 2nd Slab at 18% and Special category of Goods and Services including luxury - 28%.   The most essential goods and services attract nil rate of GST under Exempted Categories. Luxury goods and services and certain specific goods and services   attract additional cess than 28% GST.

This post describes about term clearing house.   Comment below your thoughts about this post term clearing house.

 

 

 

Learn Exports Imports Free, Click here

Click here to know GST rate of your goods or service

Goods and services tax compliance rating, Sec 149 of CGST Act, 2017      

Section 146 of CGST Act, 2017 Common Portal   

Section 145 of CGST Act, 2017 Admissibility of micro films, facsimile copies of documents              

Job work procedure, Section 143 of CGST Act, 2017         

Section 139 of CGST Act, 2017 Migration of existing taxpayers    

Section 135 Presumption of culpable mental state, CGST Act, 2017          

Liability of officers and certain other persons, Section 133 of CGST Act, 2017       

Sec 132 of CGST Act, 2017 Punishment for certain offences

What is Recovery by sale of movable or immovable property under GST

What is entry tax in lieu of octroi (ETILOO) under GST

Term RBI on T+1 basis under GST

Term Provisional Identification Number(PID)under GST

Term provisional assessment under GST

Migration of existing taxpayers under GST

Meaning of term Principles of levy under GST

 Why does Palletization require?

Why labeling and marking in Export business?

The term FCL. What is FCL means

The term LCL. What does LCL mean?

 Tips to exporters on Documentation

How does First Appraisement system of import customs clearance procedures work?

 How does Letter of Credit work?

How does STP units work in India?

How does TT (Telegraphic Transfer) work?

 How does Wire transfer work in international business?

 How is assessable value calculated by customs for imports?

How to export from India to Jamaica?

How to import to India from Jamaica?

How to export from Guyana?

How to Import to Guyana?

How to import to India from Guyana?

How to export from India to Guyana?

How to export from India to Ghana?

How to export from Ghana?

How to import to India from Ghana?

How to Import to Ghana?

 

 


Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers