Get ready to shell out more for financial services such as credit card services, bank services, insurance, etc. Under the GST Act, which would become applicable from July 1, the service tax for financial services has been raised from the current 15 percent to 18 percent. Telecom companies are also expected to raise their charges since telecom services have also been moved to the 18 percent slab, applicable from July 1. Financial companies such as banks have already started sending messages to their customers regarding the higher incidence of tax.
An SMS sent by SBI to its customers clearly mentions that the Government of India will be implementing GST from July 1 throughout the country. As a result, it says that the service tax would be increased from the current 15 percent to 18 percent. Other financial companies that have sent similar messages to their customers in recent times include Standard Chartered, HDFC, ICICI Prudential Life Insurance, etc. The response from customers was a mixed bag with some complaining about the increased charges whereas others welcoming the rollout of the revolutionary GST in the country.