Is GST payable when the Merchant is paying the interest in a credit card EMI

I purchased an item from Tata Cliq for Rs.23990 and I opt for No Cost EMI as offered by Tata Cliq. I used my credit card to pay the installments. Initially, the credit card has deducted 23040 from my account but asked for payment of installment of 3998. My account shows an interest component in the installment and also GST charged on the interest. I argued that the interest was paid by the Merchant Tata Cliq upfront and therefore why GST on interest component shown is charged to me. The onus of paying GST must lie with Tata Cliq. But both the card and Tata Cliq refused to accept my contention. If somebody could help me in this regard as to whether GST is indeed to be paid by me. more  

View all 6 comments Below 6 comments
My Dad took a EMI loan on his credit card. We were not told forehand that GST will be charged on the interest amount. We were charged 7% as interest on dimnishing basis and another 18% on the interest. On a loan of 300000, we roughly paid 42000 as interest in 2 years and 7560 as GST. The overall Interest was 8.26%. I had checked with other banks, they also said that any interest payable on credit card attracts a GST of 18% as it is a non loan product. more  
In whichever manner the Mode of Payments i.e. Installments or otherwise - does not play any roll, BUT Actual Sale Terms & Conditions which are more important.
If the deal is "Inclusive of ALL" that is to say like MRP in consumer goods then tazes and other payables (including interest) is none of your lookout but the Seller and the financer.

As against this if the Sale is only the Cost of the goods then duties & taxes will in in addition to that.

Just ascertain what was the Sale offer - whether supportive with * mark OR T&C applicable bote (literally unvisible).

If you are in first category i.e. Price inclusive of all then you can knock the doors for redressal more  
This is an case of double paying interest as per my perception. you may contact to the ombudsman of the bank. more  
Effective 01 July 2017, the Goods and Services Tax (GST) will be applicable instead of Service Tax. GST may be applicable from time to time, presently the GST rate for banking and financial services is at 18% (applicable on all fees, interest, surcharge and other charges). Please see attachment of ICICI bank credit card more  
I assume that the invoice is in your name. Any obligation arising from the transaction that is in your name, have to be billed to you. For clarity, go through the T&C of Tata Cliq's No Cost EMI offer, under which I assume, they must be clearing only the interest amount, unless stated ottherwise. more  
Post a Comment

Related Posts

    • GST evasion by smaller retail chains

      There is this dry fruit retail chain kabuliwallah and has a store in Noida. Look at the invoice these folks are creating. No gst number. All kachha total and evading taxes. GST commissioner Noida...

      By Sudesh Rai
      /
    • gst IF SELLER IS ABSCONDING

      GST DEPT HAVE ISSUED NOTICE AS SELLER IS ABSCONDING.HOW BUYER CAN PROTECT HIM SELF

      By Dalip Kumar
      /
    • GST Invoice not being issued by GATI courior

      GATI courior is not providing GST invoice for the material send by my company through them due to which we are not getting input benefit. We has repeatedly lodged complain with them but they are no...

      By SHEKHAR SHROFF
      /
    • Is it in order to charge GST over already charged component of bill with GST?

      Can GST be charged over already included amount of total cost (including GST)?

      By Biswajit Mondal
      /
    • Fake Invoice GST fraud

      GST fake invoices are a big big issue and many small and medium businesses are doing this. Now, Top management of Manpasand Beverages arrested in fake invoice #GST fraud. multi locational searches...

      By Naina Mittal
      /
    • Trucks doing 20% more post GST

      CEOs of logistics companies are saying that their trucks which were earlier travelling 300-350 kms per day are now doing 400-420 kms per day. This is great news. Can folks in business who ship thi...

      By Sridhar Mohan
      /
    • GST penalty refund

      Those whose paid GST WITH PENALTY AND INEREST TILL SEP18, SHOULD BE REFUNDED THE AMOUNT. THE AMOUNT MAY BE CRWDITED TO THEIR CASH LWDGER.

      By Jayakumar Venkataraman
      /
    • Move to 2 GST rate structure

      The survey of localcircles itself is saying that people want 2 gst rates 5% and 18% (attached) https://www.localcircles.com/a/press/page/citizens-manifesto-2019 The present Govt's manifesto says ...

      By Naina Mittal
      /
    • What is the use of Details of CGST, SCGST & IGST on TAX INVOICE to a Customer (B2C)?

      I have a retails store. We issue Tax Invoice to our customers who pay by cash or by Electronic transfer(B2C). For those who provide us with their GSTIN we provide them Tax Invoice with their GST d...

      By Anshu Kumar
      /
    • Taxes on Bills . is it tax exempt-able on consumer end!

      In our each spends, it has CGST, SGST for tax and GSTIN number available on each bills, for tax exemption can we give that to an extend to get those amount refund/ to have the benefit of consumer ...

      By Venkat Raj
      /
Share To
Enter your email & mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

Please select a Circle that you want people to invite to.
Invite to
(Maximum 500 email ids allowed.)