Is GST Applicable on Credit Card?

Wondering to know

is GST applicable on credit card bill. I will answer your question.

Your credit card transactions themselves are not subject to GST.

• The interest charges levied by the credit card issuer on your outstanding balance are not subject to GST.

• Late payment fees and penalties imposed on you by credit card companies are also not subject to GST.

• Annual fees, joining fees imposed by credit card companies are subject to GST.

• GST is applicable on the goods and services purchased by you using a credit card.

I hope you have understood

if GST is applicable on credit card payments.

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Hey Pal,

All of the leading banks permit their clients to turn credit card purchases into EMI payments. Consumers can manage their repayments more easily and save money by turning them into EMIs. The consumer is required to pay both the EMI amount and the minimum amount owing on their credit cards at the conclusion of the billing cycle. Since the implementation of GST, it is crucial for clients to understand the impact of GST on credit card or whether or not their credit card EMI payments will be impacted by GST.

How much GST on credit card bill?

GST of 18% is charged on all credit card services. Prior to the implementation of GST, a 15% service tax was applied to all credit card services; however, this service tax has since been replaced with an 18% GST. This will apply to all fees and charges assessed by your credit card provider, including interest on credit card EMIs, processing costs, late payment fees, annual fees, over-limit fees, and any other fees or charges. I hope this clarifies your query, “is GST applicable on credit cards?”

GST will be charged on both the processing fee and the interest portion of your EMI for credit card payments. You may check this on the EMI table for your credit card. In addition, finance charges will be applied to the unpaid amount and GST will be charged at a rate of 18% of the finance charge if you don't pay the EMIs that are due. Your credit card debt may quickly increase as a result of this. Consequently, it is usually advised to pay your credit card EMIs when they are due.

In addition, all fees and charges imposed by the bank are subject to GST at the rate of 18%. The following are some typical fees and charges for credit cards:

• Overage charge (when you use up more than your credit card limit)

• Late fees for payments (when you do not pay the minimum due amount by the due date)

• Any annual or initiation fees that apply to your card

• A markup on foreign exchange fees (when you spend in foreign currency)

• Any additional fees or penalties imposed by your credit card company

I would like to conclude here about the GST on credit card. I hope this helps:)

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