Credit card providers, banks and insurers have started alerting their customers to pay higher tax post implementation of Goods and Services Tax (GST) from July 1.
Customers currently pay 15 per cent service tax for such services. Starting from July 1, 2017 the GST will replace all indirect taxes like service tax and VAT.
Financial services and telecom have been put in the 18 per cent GST slab.
SBI Card has sent SMS to its customers alerting about the higher incidence of tax.
“The Government of India proposes to implement the GST which is likely to be effective from July 1, 2017. Consequently, the existing service tax rate of 15 per cent shall be replaced by a GST rate of 18 per cent,” the SMS sent by SBI Card read.
Banks like Standard Chartered and HDFC are also sending messages related to GST to their customers.
