GST : Credit card bill,Insurance premium to burn your pocket

New Delhi, June 21: Are u using credit card be careful soon your bill may increase. Credit card providers, Banks, and insurance companies have said that customers may have to pay higher tax under the new Goods and Services Tax (GST) implemented from July 1.

Currently, people pay 15 % service tax on services provided such as credit cards, bank services, and insurance premiums. The GST Council has decided to tax the above services at 18 % because the Financial services and telecom have been placed in the 18 per cent GST slab.



Experts say the consumer will have to bear the additional tax because input credit on these services is not provided.they have also say that the government may reduce rates in long run once more people pay taxes.

The Finance Minister had categorically rejected the postponement for implementation of GST and said that enough time was given to migrate to the new tax regime. He also said the government will hold a meeting at Parliament's historic Central Hall on midnight of June 30 to launch the nation's biggest tax reform GST.

Let's hope that the GST council reduces rates on these services so that the inflation may not rise.