Onus of paying GST on interest when it is paid by the another

Signed 2/3000
Online Signatures: 2
To
GST Chairperson
The Reserve Bank of India has stopped no interest EMI given by the bank and to avoid such regulatory measure, the banks have adopted a method between the Merchant and the Bank. The method underlies that an upfront discount is given to the bank which is equivalent to the exact amount of interest payable under a dubious No Cost EMI method minus the cost of the product. The total of no cost EMIs is the amount of the purchase price of the product. When you pay the installments thru' the credit card they show the amount of interest which has already paid by the Merchant upfront. Since interest attracts GST, the same is charged on you while the amount has already been paid by the Merchant. Hence if any GST is payable on the interest, it should be paid by the merchant who pays the interest upfront. The argument is not accepted by both the Merchant and the Bank. The GST council may issue direction to fix the responsibility of paying the GST on the Merchant in such cases. I am giving an example below:
I purchased an item from Tata Cliq @ Rs.23990 and my 6 no cost EMIs is 3998 each. The bank paid Tata Cliq 23040 which was charged to my account but I only have to pay 3998 for 6 months. The amount 23990 -23040 = 950 is the interest component for the 6 EMIs. This amount accordingly paid by the Tata Cliq upfront. But the EMI shows an interest component and GST on it is charged on me, while the actual payment of the interest is made bt Tata Cliq. Accordingly the onus of payment of GST must be on Tata Cliq and not on me.

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