HDFC Bank customer support has been notified about the posted complaint.
Oct 30, 2019
Updated by Ra_Av_an Any Update?
Verified Support
Oct 30, 2019
HDFC Bank Customer Care's response Dear Customer,
We have noted your concerns expressed with regard to the EMI availed in your card account. We would like to clarify that, there is a discount given by the merchant at the time of transaction equivalent to the Interest being charged by the Bank. As per the current Finance Bill, all fees and transaction charges levied in your card account will attract a rate of GST @ 18%. In terms of these guidelines provided by the Finance Bill, the Bank will be levying the GST accordingly. We would like to clarify that, effective July 01, 2017 service tax rate of 15% is replaced by Goods & Service Tax (GST) at 18% and thereby like to confirm that the GST component once charged will not be liable for any reversal. GST is a government-initiated item and a government guideline on taxes, as a bank we are abiding by it. Hence, we regret our inability to reverse the same. We request you to contact the merchant for any further clarification regarding No Cost EMI. With regard to your query on credit card please feel free to contact our Phone Banking officers at any of our 24-hour Phone Banking numbers mentioned in the below URL. tinyurl.com/y4chyauv
-Nadia
HDFC Bank Customer Assistance
Oct 31, 2019
Updated by Ra_Av_an So as per you the interest that i have been charged on principle amount for each month EMI includes 18% GST and if i pay all my EMI timely i.e. before the due date i won't be charged any more extra amount?
Nov 04, 2019
Updated by Ra_Av_an Can you confirm this?
Does the interest rate includes 18% GST?
Nov 14, 2019
Updated by Ra_Av_an Any update?
Nov 25, 2019
Updated by Ra_Av_an Hi,
It is pending since very long. I again would like to raise my concern on this.
Ok, the government charges 18% GST on Interest on credit card EMI. But in case if the EMI is a No Cost EMI, then the interest charged to the payer should be equal to the Exact amount which was shown on E-commerce.
For instance:- The Total Cost of the phone was Rs. 39999 (Shown on the website of One Plus), Now as per the guidelines, No-Cost EMI should cost me Rs. 39999.
If i break the sum it should be :- Rs. 39999 = (Principle Amount+Interest) [Excluding GST on Interest].
i.e. Rs. 39999 = INR 38998.36 + INR 1000.64 (Excluding 18% GST).
But here I am being charged total interest of more than INR 1000.64.
The actual sum is :- INR 38998.36 + INR 1115.5 = INR 40113.86 (Excluding 18% GST).
Difference= Actual Sum - Price shown on Website
i.e. INR (40113.[protected] = 114.86 (Excluding 18% GST[protected] The question again here is, Why am i being charged this INR 114.86 extra.
Nov 25, 2019
Updated by Ra_Av_an If i break the sum it should be :- Rs. 39999 = (Principle Amount+Interest) [Excluding GST on Interest].
i.e. Rs. 39999 = INR 38998.36 + INR 1000.64 (Excluding 18% GST).[protected][protected][protected] This break was shown while i was making payment, by the merchant.
It stated that INR 1000.64 is the discount offered by the merchant and the same discount has to be charged as interest by the bank.
Please help here on Urgent Basis.
Dec 19, 2019
Updated by Ra_Av_an Any update?
Please help me.