Business

Truth Or Myth: Double GST On Payment By Credit Card. Click Here To Know It All!

न्यूज़ वर्ल्ड इंडिया | 0
2423
| July 4 , 2017 , 16:36 IST

The midnight session of the Parliament on June 30 not only launched Goods and Services Tax (GST) but confusion, disarray, and doubts. Ever since GST was launched by the government on July 1, the market has been in a state of confusion. Despite the government's various efforts to spread awareness about GST, a large number of customers and traders are still clueless of GST's impacts.

This cluelessness was highlighted on the social media in form of rumours, one of them has been largely circulating on Whatsapp. According to this rumour, GST will be levied twice on the payment of utility bills through credit cards. The message says that GST will be levied once on the utility bill and again on the credit card bill, urging people to use alternative ways to pay their utility bills.

This, however, is just a rumour and nothing else. Revenue Secretary Hasmukh Adhia took to Twitter in GST's defence and said, "A wrong message is doing rounds on social media that if u make payment of utility bills by credit cards, you will be paying GST twice. This is completely untrue. Please do not recirculate such message without checking it with authority."

He has also started a series of tweets in an effort to dispel the myths going on about GST.

Although, it's worth noting that earlier service tax on financial services was 15 percent which now is 18 per cent under GST, so the bills will take a slight toll on your pocket on late payments of the bills. Earlier too, the GST service tax was levied by banks only on interest payments, annual charges and processing fees on EMIs, not on credit card payments.

In hindsight, various other utility bills will see a spike in taxes as GST chimes in. LPG, broadband, and mobile services are sure to see a spike in the new tax structure as the government has put them in a higher tax slot.

In case of LPG, the government has put the green fuel in 5 percent tax branch while states like Delhi didn't tax it at all.
So, while the rumours of double taxation are undoubtedly not true, people are sure to see a hike of 3 per cent tax in their utility bill payments.