On availing the Smart EMI Facility, you will need to pay a certain one-time processing fee for this. So, you can buy anything you want and repay the total amount in easy monthly installments within a fixed tenure of 6/ 9/ 12 months or more according to your convenience. Processing Fee on Credit Card EMIĬredit Cards also help individuals in converting their big-ticket purchases into smart EMIs. So, the GST of 18% will be levied on this amount (INR 600) only which means it will be INR 108. People Also Look For What Happens If You Don't Pay Your Credit Card Bills on Time? The late payment charges for this amount will be INR 600. Suppose you have a total outstanding amount of INR 5,000 and you fail to pay it within the due date. Let’s understand this through an example. This late payment fee tends to vary from the outstanding amounts on your credit card. This late payment fee will be charged only if you fail to pay even the minimum due amount (usually 5% of the total outstanding amount) within the due date. But when you pay this amount after the due date, it will be levied on the late payment fee charged this outstanding amount. GST is not levied on the total outstanding amount. So, if you are a smart user and pay your credit card bills on time, there is no way that GST will be levied and your credit card usage will not be affected. Late Payment FeesĪs you know that after making a transaction with your credit card, you need to pay this amount back within the due date. There is an important thing that an individual should remember that GST will have no additional impact on the users who utilize their credit card carefully and intelligently.īelow, you can have a look at all the components of Credit Cards such as Interest charges, Late Payment Fee, Processing Fee and Annual Fee. GST is levied at 18 percent, whereas before this, service tax was levied at 15 percent. Credit Cardholders use their cards in purchasing the things they like and repay the amount within a fixed due date. So, without any further delay, let’s start reading! GST on Credit CardsĬredit cards are one of the most popular financial products among the users, and since the implementation of GST, there are a number of users who are having several doubts related to it. If you are one of them who is having confusion regarding the impact of GST on these two facilities, this article could help you clear your doubts. So, in this article, we will be telling you everything about how the GST applies to different financial charges related to loans and credit cards. These are two of the most popular financial products in the financial market. Especially, individuals are having so many doubts when it comes to the implication of GST on different financial charges on the loans and credit cards. GST has helped in making the overall tax regime more unified and transparent.īut many are finding it tough to understand the overall taxation system in the GST regime. Before its introduction, there were several state and central taxes that were causing too many problems in the overall taxation system. But the introduction of the Goods and Services Tax (GST) on July 1, 2017, is undoubtedly the biggest reform that this country has witnessed in a very long time. Since Independence, India has seen many tax reforms to make the taxation structure of our country more transparent to the citizens of the country.

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