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  • Category: Government

    Is GST applicable for online transactions?

    Have a query about GST? Wondering if it is applicable for online transactions? You can read answers on this page and then understand how GST is applied to online transactions.

    I want to know that GST is applicable for online transactions or not. I want to do some payment of my insurance policy using my net banking/ debit card.
    So will I need to pay GST for that online transaction as well?
  • Answers

    5 Answers found.
  • The online banking transactions like net banking, mobile wallet, online insurance premium,mutual funds etc will be slightly costlier because the existing service tax was 15% which is now changed to 18% under GST. So you will have some small increase to be incurred on your online transactions. For person who subscribes to such many services the increase may be really felt.

  • Online transactions are also covered by GST under services category. Before GST the service tax is 15%. But now it is 18%. That means there is an increase of 3% tax because of GST. Money transfers through NEFT also is chargeable. Every transaction they will debit the money for tax from your account. Only advantage is easiness in the transaction only.
    GST is applicable for online purchases. For example you are opting to buy a smart phone from online booking whatever GST is applicable for purchase of phone in the market the same percentage is applicable for online purchase also. In addition to that you have pay the tax to bank also.

    always confident

  • For online purchasing also the earstwhile taxes have been replaced with GST and accordingly the online store will invoice you. It does not necessarily mean that prices will increase. It depends the cost at which it is available to the online store and accordingly they will decide the selling price.

    In case of online banking transactions the earlier tax of 15% will be replaced with 18% GST so there will be a increase of 3%. All the transaction where we were paying 15% tax will be now 3% more.

    Knowledge is power.

  • Amazon, ebay, flipkart, banks are charging 15-18% on the services offered not on the electronic transactions. If electronic transactions were to be taxed, people would stop paying online. So this is not officially added. And the tax percentage are on the service provided.

    Here you will be charged GST in the following way.

    1. Transaction provider to service provider. e.g. say Payumoney to website owner in 15% GST
    2. Customer being charged by the website owner by adding that 15% charges.

    Electronic commerce has no rule of 20L so every service provided electronic to Indian customers are charged under 15%. The current IGST for total transaction would be with 3% additional total 18% for the online transactions.

  • To be precise, online payment of Insurance premium attracts a service charge of around 2.5% to 3% which varies from policy to policy case. On such service charge earlier service tax was applicable @15% and now this rate has become 18% under GST, so there was always a charge on such online transactions and nothing has changed except 3% increase in service tax.

    If you talk of other services on which GST will be charged or not, then again there is no change except the increase in rate of tax i.e. from 15% to 18%.

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