Hotness Someone please explain GST charges on Amazon No...

Hot Deal Someone please explain GST charges on Amazon No Cost EMI

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Giphy
Deal Subedar
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1486
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I bought Microwave from Amazon using HDFC credit card (under 12 months NO Cost EMI offer) using friends card.

Offer was 1458 to paid every month (0 interest) for 12 months.
HDFC is charging my friend 1458 every month and extra 34.09 as IGST every month.

Can someone please explain these charges?? Do we really need to pay this extra charges as I think GST is already included in the amount which I need to pay to Amazon (1458)

12 Comments  |  
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Deal Cadet
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370
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I think these GST charges are leviable on the services given by bank.
Here their is 2 type of GST charged.
1. Included in goods
2. Service of bank

Giphy
Deal Subedar
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1486
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lootbaba479 wrote:

I think these GST charges are leviable on the services given by bank.
Here their is 2 type of GST charged.
1. Included in goods
2. Service of bank

So 2nd type of GST is charged on all credit card purchases? or just EMI ?

Mine was NO COST EMI (its very sad we need to pay extra GST for this too)

Tenor %281%29
Deal Cadet
51
271
3
lootbaba479 wrote:

I think these GST charges are leviable on the services given by bank.
Here their is 2 type of GST charged.
1. Included in goods
2. Service of bank

True.

If the EMI is no cost EMI, then 1. Included in goods is 0. And 2. Service of bank will be as per bank terms.

Although, you will always see 2. Service of bank in your bank statement in case of EMI.

What Amazon or any other retailer do in case of No cost EMI, they reduce the price of the commodity with the amount equal to 2. Service of bank charges.
That means, the total tax which you are liable if you are opting for EMI, is given as discount in the product to you.

Missing
Deal Newbie
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20
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0 EMI does not exist….
Actually ur EMI include Principal Amt and Intrest, which is 1,458/-(principal amt 1,268 + 189.39). 18% GST of interest 189.39 is 34.09/-

Samantha
Deal Lieutenant
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NIKESH21 wrote:

0 EMI does not exist….
Actually ur EMI include Principal Amt and Intrest, which is 1,458/-(principal amt 1,268 + 189.39). 18% GST of interest 189.39 is 34.09/-

how did you do that calculation?

1458 = 1268+189.39 ??

I have bought Mi A1 from flipkart on SBI CC with no cost EMI.. I have to pay 1300 per month for 9 months. For first EMI, SBI charged 1300 + 23.26

how to get this 23.26 number ?

Tenor %281%29
Deal Cadet
51
271
3
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aswaniexpress wrote:

how did you do that calculation?

1458 = 1268+189.39 ??

I have bought Mi A1 from flipkart on SBI CC with no cost EMI.. I have to pay 1300 per month for 9 months. For first EMI, SBI charged 1300 + 23.26

how to get this 23.26 number ?

No cost emi does not technically exist.

Banks always charge interest on EMI transactions.
However, the retailers, reduce the total amount of product by the exact amount that the bank is charging you as interest. so ultimately, the interest is paid by the seller/retailer.(thats why they call it as no cost emi).

GST for an EMI will always be charged to you from your bank, for giving you service/feature as EMI.

Missing
Deal Subedar
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2765
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aswaniexpress wrote:

how did you do that calculation?

1458 = 1268+189.39 ??

I have bought Mi A1 from flipkart on SBI CC with no cost EMI.. I have to pay 1300 per month for 9 months. For first EMI, SBI charged 1300 + 23.26

how to get this 23.26 number ?

Reverse calculation.
GST (easrlier service tax) on banking services is at 18%.
So if GST is 23.26 then finance cost is 129.22
so principal amount is 1170.78

Missing
Deal Cadet
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120
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Goods and service tax (GST) is charged by banks like HDFC ICICI on interest component of EMI (credit cards)
its sad but true
GST will be charged and we cannot do anything, recently Amazon has clearly displayed this tax aspect on their banners on site

Missing
Deal Newbie
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20
0

I bought a laptop from flipkart I’m no cost EMI
The billed amount is 63990-4910( interest)
MY first EMI was 5332 plus IGST 1140.88
Do I need to pay the Igst every month ?

Missing
Deal Subedar
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2765
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mayankt9498948 wrote:

I bought a laptop from flipkart I’m no cost EMI
The billed amount is 63990-4910( interest)
MY first EMI was 5332 plus IGST 1140.88
Do I need to pay the Igst every month ?

total interest amt for GST of 1140.88 is 6338. that can not be one month interest. may be bank has charged full interest in first month itself.

Missing
Deal Newbie
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you need to pay gst on interest component, it will keep reducing each month as interest component of emi decreases

Missing