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Credit card charges will go up from 1st July
Posted on: 24/Jun/2017 1:01:04 PM
The banks have started sending information to their customers regarding the revised tax ratio, GST is set to be implemented throughout the country from 1st July.
Several interest ratios for various items and services have been revised under the GST.
Presently, the service tax for credit cards, bank services, and insurance cover is under the 15% slab. However, under GST, this has been revised upwards to 18%.
The banks have started advising their customers regarding this. A brief on the press release regarding this by the State Bank of India:
GST is set to be implemented from 1st July throughout the country.Under GST, the service tax for banks has been revised up to 18%. SMS is being sent to the customers.
Other banks have also started sending SMS to their customers. Some Insurance companies are also doing the same regarding the upward revision of service charges to 18% slab from the present 15%.
Endowment policies are charged a service tax of 1.88% presently. Under GST, this is being revised to 2.25%,
Presently, term insurance premium, ULIP Health, Car insurance, etc., are charged with service tax of 15%. This is also revised to 18% under the GST.
The service charges for term insurance, ULIP, and endowment policies are not identical. This will be based on risk coverage and the savings.
There are prospects of reductions in the premium concerning the investment and savings in July. The experts in the field of insurance and related services and service charges observe that there will be no major changes because of GST implementation.
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