"There is no charge other than the service tax at the rate of 15% becoming GST at 18%," said Hota. Since the Rs 100 is a fee against a service there was hitherto service tax applicable which was Rs 15. As against the Rs 15 tax applicable earlier the merchant will now be paying a goods and service tax of Rs 18.For the customer there is no change as the merchant discount rate is not allowed to be passed on. For banks the difference is that they will now get input tax credit under GST. Bankers said that it is not yet clear how much of a savings they will enjoy on account to the input tax credit.The government has said that businesses should pass on the benefits they get in the form of input tax credit through lower prices for customers.

Source: Times of India July 02, 2017 15:47 UTC