# Business Facilitator (BF) / Business Correspondent (BC) – Entry 39
## Exempt Services
Services by the following persons in their respective capacities:
(a) A BF / BC to a banking company with respect to accounts in its rural area branch;
(b) An intermediary to a BF / BC with respect to services in (a); OR
(c) A BF / BC to an insurance company in a rural area.
## Outside the Scope – GST Implications
- If services do NOT fall within Entry 39, they are taxable.
- Reverse charge applicability:
- Banking company is liable to pay GST under RCM on commission/fees for taxable services provided by a BF to it.
- BC is liable to pay GST under RCM on taxable services provided by agents of BC to the BC.
## Quick Map
| Service Flow | Forward / RCM |
|---|---|
| BF → Bank (rural branch a/c) | EXEMPT |
| BF → Bank (urban branch a/c) | Taxable, RCM on Bank |
| Sub-agent → BF (rural) | EXEMPT |
| Agent → BC (taxable services) | RCM on BC |
| BF/BC → Insurance company in rural area | EXEMPT |