GST on Credit Cards & Other Transactions
We all know how Goods and services tax has affected life of most people, whether it may be a scenario of a businessmen or any other individuals, GST has left a great impact everywhere. But now government has clarified some further add ons on GST which can effect one’s financial planning and goals as well. Government clarifies that GST on credit cards outstanding bills will be applied but transactions which are related to securitisation, derivatives, future and forward contracts are being exempted from this scenario.
Government even clarifies that withdrawl from ATM’S and other free services of banks and even late payment of loans will not be charged under goods and services tax but late payment on brokerage amount will be taxable. Now these kind of government policies will definately effect your financial goals. Nowadays most of us use credit cards to manage our financial budget which makes credit card holders highly dependent on the services provided by banks but sometimes many of us do late payments and are charged according to bank late charge policies. But now all this will be very expensive because of the introduction of goods and services tax.
Credit card which was previously being used to manage financial needs of a family and to achieve some of the financial goals can now be a risky treat for an individual or for his/her family because of GST. Now if someone forgets to pay GST bills on time or is rather not capable to pay the goods and services bill on time then he/she should have to pay an extra tax on the amount which is due and is considered as late payment.
Now this scenario is definitely going to effect ones financial planning and economy as well, because till now the people who were smartly using the credit cards according to their needs without being worried for late payment charges which were very less can’t further continue the same because of the heavy goods and service tax which can ruin all the future plannings regarding financial budget of a family.
So if you are a kind of person who is more into using debit and credit cards you should use them very wisely keeping in mind about late payment policies of GST which can be a pain if not considered in a serious way.