New Delhi: Credit card providers, banks and insurers have started alerting their customers to pay higher tax post implementation of Goods and Services Tax (GST) from 1 July. Customers currently pay 15% 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% GST slab. Consequently, the existing service tax rate of 15% shall be replaced by a GST rate of 18%,” the SMS sent by SBI Card read.

Source: Mint June 20, 2017 12:16 UTC