Citibank — citi bank charge gst for interest amount from your card loan as well as card emi purchases

Address:

600122

Aug 23, 2019

Need information and refund

My citi card limit is 75000; and i purchased tv in flipkart and converted in to no cost emi also i got loan on card amount around [281999.38]

1. Tv emi - [12274.00] and monthly emi is [1450] and interest amount is [153] and 18% gst of 153 is [27.54].

2. Loan on card - [281999.38] and monthly emi is [8284.00] and interest amount of current month is [4169.45] and 18% gst of 4169 is [750.42]

I have never seen in any bank that they charging gst for interest amount when did not use my credit card limit. When i contacted customer care and they saying this is government policy and thats why we are charging like that.

But could not understand why i have to pay gst for the amount which citi bank earning through my interest amount. Already i'm paying interest amount for the emi's with interest rate of 18% for card loan and 15% for flipkart purchase.

So guys please aware of all these details and don't believe blindly what ever they say when they ask you to purchase credit card and loan. With some offers and benefits.

And i asked customer care what is the closing process of these loans and they saying processing fee is 250rs and 3% of outstanding principle amount as well as interest for this 3%. So totally closing charge is 8500+250=8750 and 18% of gst is 1575 so totally 10325 rs.

So even if you want to close the loan they wont let you to close with no charge. So you are totally trapped.

So i would like to know is there any rule from government that bank should charge for gst for interest amount in loan emi???

Also would like to know that what ever amount citi bank earning through interest of laon emi, they should charge the gst from customer itself???