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No GST Gone, It Is Still On Credit Cards Late Payment

GST on Credit Cards Late Payment

In a recent announcement done by the government, now there will charge on the late payment of the credit card bill of 18 percent. It was also mentioned that there will no charge on ATM and issuing of the chequebook. The GST is also applicable on ATM transactions after the free 5 limit including ATM enquiry and balance receipts.

Ministry of finance cleared the air over this issue, by releasing the frequently asked question in which it mentioned the procedures and charges related to banking, insurance & staff.

Also, the securitisation and derivative contracts are out of GST which makes a freeway for the services offered by the banks. Earlier, the GST department had sent notices to the private banks for paying GST on the free services. The notice was regarding the taxes due for the time period between 2012-2017.

After which the finance department pleaded to the revenue department to not to tax the free services as the banking services come under the financial and revenue department as both the departments are further into the finance department.

Problems in Taking Taxes of Backdate

Read Also: GST Charges For Cheque Bounce By Banks (Inadequate Balance & Non-Financial Reasons)

Is it that Free Services Don’t Come Under Commercial Activity?

Flipkart Got the Clean Chit

In the early days, e-commerce company Flipkart faced a hard time in the tax scandal of 110 crores over the tax on discount. The tax department considered the discount amount as capital expenditure and made a notice towards, however, the income tax appellate tribunal cancelled notice.

Recommended: GST E Way Bill Set To Reduce Online Delivery Time

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