How to calculate GST on no cost EMI??

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Last Comment 2022-04-06

2019-06-03

Hi Dimers,
As I’m planning to buy a product (OP7 8+256GB) worth 38000 from Amazon with SBI no cost EMI option. ( 36000 after 2k instant off via SBI CC)
I’m little confused about the actual cost I need to pay to SBI, as they will charge GST on no cost EMI
so could anyone plzz tell me how this GST will me calculated on an EMI of 6000 p.m. for 6 months.
how much would I need to pay for an EMI??

Also please let me know if is it good to take it on no cost EMI or should I go with full payment at once?

34 Comments |

13 Dimers

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https://www.desidime.com/discussions/how-to-calculate-gst-on-no-cost-em?page=1#post_5869223

raghupro

2019-06-03

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Just check what is the interest amount first. For example, if the interest % is 13% per annum for 6 months EMI on laptop amount Rs. 38000 then interest would be 13% of Rs. 38000 for 1 year = Rs. 4940 but as your EMI is for 6 months it will be Rs. 4940/2 = Rs. 2470 as interest which you might get as upfront discount from Amazon but you will be charged interest from bank. On top of Rs. 2470 interest over 6 months you will end up paying 18% GST on Rs. 2470 = Rs. 444.6 for 6 months together which is Rs. 74.1 per month. Hope it's clear.

https://www.desidime.com/discussions/how-to-calculate-gst-on-no-cost-em?page=1#post_5869247

adrishya

2019-06-03

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The GST wouldn’t be 74 every month but 18% of interest of that month so it will be more initially and gradually come down. However total will be 444.6

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https://www.desidime.com/discussions/how-to-calculate-gst-on-no-cost-em?page=1#post_5869347

htzaz

2019-06-03

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so ideally I will be paying approx 500 more in the name of GST on no cost EMI,
either this way or that way, so it would be good to pay at once ??

https://www.desidime.com/discussions/how-to-calculate-gst-on-no-cost-em?page=1#post_5869694

_One_Miller_

2019-06-03

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Yes

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https://www.desidime.com/discussions/how-to-calculate-gst-on-no-cost-em?page=1#post_5869427

tank_u_m8

2019-06-03

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can i first buy on no cost emi than after 15 days pay the loan amount in full and close the loan?
like if i buy an something at no cost emi and amazon give 30k item at 27.5k after adjusting for 2.5k interest, so can i just pay 27.5k to bank and close the emi?

https://www.desidime.com/discussions/how-to-calculate-gst-on-no-cost-em?page=1#post_5869914

hiteshu

2019-06-03

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Brother as per my calculation your total interest amount would be 1327. So u have to pay 18% gst on 1327 that cones to appx 240

https://www.desidime.com/discussions/how-to-calculate-gst-on-no-cost-em?page=1#post_5869992

htzaz

2019-06-03

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is it total or per month I need to pay 240 extra?

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https://www.desidime.com/discussions/how-to-calculate-gst-on-no-cost-em?page=1#post_5869917

hiteshu

2019-06-03

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Please check how much amount Amazon deducting for 36000 item on no cost 3 month emi.

https://www.desidime.com/discussions/how-to-calculate-gst-on-no-cost-em?page=1#post_5870011

hiteshu

2019-06-03

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But u don’t get reward points on emi transaction

https://www.desidime.com/discussions/how-to-calculate-gst-on-no-cost-em?page=1#post_5870016

htzaz

2019-06-03

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really ?? r u talking about SBI CC reward points?

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https://www.desidime.com/discussions/how-to-calculate-gst-on-no-cost-em?page=1#post_5870375

Guy_Next_Door

2019-06-03

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Most of above calculations are wrong except one guy.
Here is breakdown
Principal amount 34576
Interest (upfront discount) 1417
Gst total 255
1st month 72.18
2nd month 60.48
3rd 48.60
4th 36.72
5th 24.66
6th 12.42
Ps there may be error of + 10 or -10 because of decimal places.
To pay least gst buy on 24th of this or any month, since for 1st month emi interest will be for just 10 days.

Go for emi because if you invest 36000 in safest investment(with easy liquidity), you will gain more than 255 rs

https://www.desidime.com/discussions/how-to-calculate-gst-on-no-cost-em?page=1#post_5870800

htzaz

2019-06-04

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what if I buy on 10th of this month?
Is the GST charges high for me then or any other reason?

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https://www.desidime.com/discussions/how-to-calculate-gst-on-no-cost-em?page=1#post_5871102

JaiKrish1031

2019-06-04

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Sample. No cost emi.

https://www.desidime.com/discussions/how-to-calculate-gst-on-no-cost-em?page=1#post_8362977

sweetypaul487797

2022-04-06

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Hi all i bought a laptop for 68000(actual cost they mentioned was 67500 but then they mentioned there will be card swipe cost of 1k and the put it overall as 68k) but from store on no cost EMI for 6 months. I am so confused with all the calculation. As per the bank interest rate will be deducted by 1.08%p.m (13%.p.a) and a processing fee was deducted for 680rs and it is showing gst as 122rs. However unlike online purchases where they provide upfront discounts i was not given any discount the bill was for amount 68k and in receipt i see EMI amt =11766.90, 13% p a interest , total amt after int as 70601.40(how they are calculating for 3 months interest coz as per 6 months it should be 4406) and then it mentions Merch/mfr cashback = 3.85 % ,cashback amt 2604.