Even though the government of India is encouraging people to use digital money more in place of real money, most people aren’t even aware that these online transactions are taxable. Want to know how much money you are paying as GST to banks for each of the transactions you perform online or through your mobile phone? Here you go.
GST rate on Online Transactions
The old service tax (which was 15%) on bank payments and online transactions has now been replaced by GST at the standard rate of 18%. This tax shall be applicable on the fee levied by banks on the online transactions performed by their users. That means users will now have to pay 18% GST taxation rate on their bank transaction fees. Let’s understand by the example of the State Bank of India (SBI).