Someone please explain GST charges on Amazon No Cost EMI
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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)
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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)
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 ?
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
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.
Found one good article on this.
you need to pay gst on interest component, it will keep reducing each month as interest component of emi decreases
As others have rightfully pointed out “No cost EMI” doesnt exist in India. RBI had banned no cost emi plans couple of years back citing some vague reasons. Interest portion of EMI attacts GST@18%. Thats the same for most loans including personal loan. I’m sure amazon clearly mentions about this aspect on their website/app.
18% gst is paid for the interest of the loan
ex: 10k is the loan
14% is the interest
1400 is the interest which is paid as upfront discount by amazon but we need to pay 18%as gst for this amount ,that is a total of 252 by the end of ur 12 months plan
Yess this is right and simple
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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