Goods and service tax was introduced by France in 1954 and now adopted by 140 countries. In late 1990’s, it was also adopted by India. In 1999, finance minister of West Bengal Shri Asim Das Gupta designed a model for goods and services tax. Many years discussions and disagreements had happened between the ruling and non ruling parties and then finally launched at midnight on 30 June 2017 by Prime Minister of India Shri Narendra Modi. “One Nation One Tax” system was started in our country which abolish all other taxes such as excise duty, entertainment tax, advertisement tax, commercial tax, service tax and so on. India had adopted dual model that is administrated by both State and Central Governments. Transactions made within a state will be levied with Central GST (CGST) and State GST (SGST).

Indian banking sector is sufficient capitalized and well regulated before the application of GST in India. It is important to say that the financial and economic position of our country are far superior to any other countries as banking  are 18 public sector banks, 22 private sector, 46 foreign banks, 53 regional cooperative banks, 1542 urban cooperative banks and 94384 rural cooperative banks as of September 2019. Nowadays, goods and service is applicable almost all the sector like industrial sector, agriculture sector, banking sector and so on. This paper investigate the impact of goods and service on banking sector as the tax rate has created an impression in the banking sector is contributing much towards the economic growth of the country. Now the tax regime made abolish of centralized registration of the banks. The tax rate has created an impression in the banking sector.

KEYWORDS: GST, Banking Sector, Goods and Service, Economic Growth, New Tax Regime.