In 2022, we got the ability to pay Income Tax in India with a credit card, a move that made a lot of credit cards wake up and change their policies around earning rewards on payment of taxes in India. You can also pay indirect taxes, basically GST, using a credit card.
Pay GST with your credit cards.
The GST website has now enabled the option to pay your GST dues with a credit or debit card. One could pay online via Net Banking, NEFT/RTGS Transfer, or deposit the taxes offline at a bank branch. The option to pay taxes via a credit or debit card has also been enabled.
At the moment, there is only one payment gateway enabled, which is that of Kotak Mahindra Bank. The charges are as follows:
- Debit Card (Visa/MasterCard) for less than INR 2000 spending: 0.30% + GST
- Debit Card (Visa/MasterCard) for more than INR 2000 spending: INR 15 + GST
- Credit Card (Visa/MasterCard/Rupay/Diners Club): 0.78% + GST
In what states can you pay the GST with your Credit Cards?
If you are a GST-registered business in the following ten states, you can pay your GST dues with a debit/credit card from now on:
- Assam
- Delhi
- Goa
- Gujarat
- Haryana
- Himachal Pradesh
- Kerala
- Madhya Pradesh
- Maharashtra
- Odisha
Other states are expected to be added to the list soon.
What cards are enabled?
Visa, Mastercard and the Rupay/Diners Club network cards are enabled.
What is the use case here?
The use cases could be many folds, but achieving milestone spending where needed is key. Certain cards will get you a fee waiver if you spend an x amount in a year, and other cards will get you bonus points if you meet a minimum spend in a month. For the moment, the cards that will earn you something on Government spending are the following:
- SBI Prime Vistara
- Yes Bank Marquee
- Standard Chartered Ultimate
- Axis Bank Atlas
- IDFC Bank Vistara Credit Cards
Bottomline
You can now pay your GST in India with a credit card for a 0.78% surcharge (ex GST). MasterCard, Visa and Rupay credit cards are enabled, and American Express does not work for these transactions. The transactions are posted immediately on the GST portal as well.
Have you tried paying your GST dues with a payment gateway? What has been your experience with this?
Liked our articles and our efforts? Please pay an amount you are comfortable with; an amount you believe is the fair price for the content you have consumed. Please enter an amount in the box below and click on the button to pay; you can use Netbanking, Debit/Credit Cards, UPI, QR codes, or any Wallet to pay. Every contribution helps cover the cost of the content generated for your benefit.
(Important: to receive confirmation and details of your transaction, please enter a valid email address in the pop-up form that will appear after you click the ‘Pay Now’ button. For international transactions, use Paypal to process the transaction.)
We are not putting our articles behind any paywall where you are asked to pay before you read an article. We are asking you to pay after you have read the article if you are satisfied with the quality and our efforts.
Good idea to have a disclaimer that ccs used for non personal transactions can get queries by the bank for non compliance of terms and get blocked too.
Good move