Chit funds body meets FM, seeks GST exemption

CHENNAI: The All India Association of Chit Funds, a national body representing chit fund companies, has sought the Ministry of Finance, Government of India, to grant GST exemption for consideration that chit fund companies receive from the chit group members for the financial services provided.

The office bearers of the association met with Union Finance Minister Nirmala Sitharaman in Chennai recently, and submitted their demand that consideration received by chit fund companies be granted the same GST exemption as the interest amounts received by other non-banking financial companies and banks.

The association has also urged the Centre to update the Chit Funds Act of 1982 to align with current trends and called for the creation of a separate classification for chit fund companies as NBFC-Chit Funds, similar to the existing NBFC-MFI classification for microfinance institutions. The association also urged the finance ministry and the regulator to ensure that new-age banks do not shy away from opening current accounts for chit fund companies.

The office bearers were: VC Praveen, president; A Chitrarasu, general secretary; AP Arunachalam, treasurer, and DC Elangovan, chairman, Advisory Committee.

Source : https://www.dtnext.in/news/business/chit-funds-body-meets-fm-seeks-gst-exemption-803172