No double taxation for credit card or e-payment
Posted on: 04/Jul/2017 12:29:34 PM
There were rumors that payments made through electronic mode or credit card shall attract double taxation, as per the GST regime that got implemented on 1st July 2017. The government has come forward refuting the rumor.
In a tweet, the Revenue Secretary Hasmukh Adhia has clarified stating that there is a wrong information making the rounds on social media that making payments of utility bills through credit cards or electronic payment will imply twice the GST. This is definitely untrue. Kindly do not pass on such information without any authoritative approval, he pleas.
The managing director of National Payments Corporation of India, AP Hota also affirms that the rumors stating double taxation for e-payments is untrue. Other than the 15 percent service tax becoming 18 percent as GST, there is no other hidden charge.
Financial sector
According to recent reports, a few bankers say that GST has its impact only on the financial sector with just 3 percent increase in tax. Bankers also state that the effect of GST is just 3 points increase in tax. For all services offered against which we charge a fee in the financial sector, we have already taxed them. There is no transaction tax though, says a senior banker.
