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
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