There is GST on Credit Card Transaction. A false news is being spread that GST will be taxed twice for Credit Card Payments. In other words, If you make a payment through your bank’s credit card, you need to pay double tax, as per this news. However it is clarified that, this is completely false and same has been clarified by the Revenue Secretary. In our previous articles, we have already provided Returns under GST and Interest Provisions. Below we have provided complete information on GST Rates for Credit Card transactions and applicable provisions.
Details of GST on Credit Card Transaction
|GST on Credit Cards||18%|
|Input Tax Credit||Yes|
|Tax on Foreign Credit Cards||No|
Set Off : GST on Credit Card Transaction
Banks will also be able to set-off their GST liabilities against credit received on purchase of goods (IT infrastructure and furniture etc.) and resultant savings could get ultimately passed onto end customer. GST on Credit Card Transactions are also seeing hike in processing.
Through the concept of ISD (Input service distribution) the accumulated input credit could be transferred and utilized in cases of locations discharging GST liability are different from location where inputs are received. Credit Card Transactions will be therefore covered under GST.
With the implementation of GST a moderate increase in the cost of financial services such as loan processing fees, debit/credit card charges, insurance premiums, etc. is expected.
Also Read our Other GST Related Articles
Conclusion : GST Interest
Through this article, we tried to clear all questions relating to GST on Credit Card Transaction on a whole. If you have any further questions on GST on Credit Card Transaction, feel free to post your questions below on our comments section.