GST on Credit Card Interest
When there is no levy of GST on interest charged by bank, why GST is charged on interest levied by credit card on EMI transactions. After all, any credit card is backed by one or the other bank. As far as other charges are concerned like annual fee, late fee or processing charges etc. it is ok if GST is levied, but on interest, it seems to be grossly unjust and unfair to levy GST. Even when some No-Cost EMI facility is opted for purchase of any product by Credit card, the full amount of GST is included in the price of the product, still the bank or for that matter the credit card company is charging GST on notional amount of interest, though not paid, but calculated at normal rate of interest and this way, there seems to be double charge of GST for the purchase of a product. Also it is to be noted that the middle class or lower middle class is more affected due to this levy because their dependence on such credit card usage is more than the rich section of society who can have direct facility from bank where no GST is levied on interest.
If the Local Circle members have faced this situation or somehow agree to this point of view, I request them to share their thoughts on the issue so that government may consider to provide some relief in the matter by doing away with GST on credit card interest or at least relax in the 18% rate of GST which seems to be too high. more
Utter failure of NDA on economic front.. more
Modi ji do not bother for citizen but for industrialist only. GST is paid by common masses and dividend is enjoyed by industrialist which is tax free. Corporate tax is 25% max but individual salaried poor fellow have to doll out 30%. Industrialist can book all household including servent salary vehicle fuel depreciation at company cost but individual get only Rs40,000/ as standard deduction for whole year journey to office and back, their medical expenses earlier was tax free up to Rs.15000/ but nor in Modi 2 it’s nil. It’s a poor governance which can be visualised in every walk of life. Still we say JAI HOO MODI JI. more
We have since moved away from socialist economy to liberal to capitalist economy. There is no doubt that BJP under NaMo is extremely capitalist, and following wrong planning and procedures of taxation. more
Interests on bank loans, housing loans etc., do no attract GST. But suppose you take a financing lease, it is applicable. more
GST on the Credit Card or Debit Card to me is illogical. Any Fee charged by a Service Provider/Card Provider may only be considered for GST being services rendered and that too not more than 3% payable by the Service Provider who should not pass on the liability to its customer. I have never opted for EMI facility on Credit Card repayment and therefore never experienced such an issue.
Unfortunately, our Governmant has never realised a fact that any indirect tax ultimately becomes the liability of Citizens. Alternatively we can presume, Government discourage use of such cashless transactions but on the other hand it shows its intent to digitalised transactions. This is called DOUBLE FACE OF GOVERNMENT. more
There is no logic or justification for charging GST on number of services. Some examples are:
1. GST on premium paid for LIC Policy
2. GST on Insurance Policy for car
3. 18% GST on member's contribution in Coop. Hsg. Society and residents Association. This has been done by changing the definition of Cooperative Housing Society in GST Act.
The bureaucrats in finance ministry are finding innovative ways to charge GST to ensure that Govt has enough funds to pay them pension for their life time with increases by Pay Commission from time to time.
We should be thankful that you are not required to pay 28% GST on air you breathe to fund Air Pollution Control measures. more
It is nothing but the BAD GOVERNANCE of administrative principles in a democracy, and a political democracy is the worst form of governance closer to autocracy or dictatorship. Charging of GST on interest is something illogical and bad governance. No wonder there is economic slow down and ultimately coming to recession - all round displeasure of the citizens. Some solution has got to be found by the citizens to deal with the illogical GST/CGST charged on everything and anything, like eating up anything that crawls in Chinese saying. more