The first few lines of the HDFC Credit card statement for some customers list a few charges labeled with IGST-VPS RATE-18.0. Those who are reading their HDFC Bank credit card statements for the first time would wonder what this IGST-VPS is. If you are an HDFC credit card user, read more to know about IGST VPS references in your statement.
IGST-VPS RATE 18.0 charges in HDFC Bank Credit card statement
I came across the IGST VPS Rate-18.0 entries when I was checking my billing history on HDFC netbanking site. To my surprise, it appeared in the unbilled section even though I didn’t use the credit card on that month. I did a background check on this, and finally, I found the reason for having IGST VPS charges on HDFC credit cards.
- The IGST-VPS at rate 18.0 percentage is a service charge as per the new integrated goods and services tax system in India.
- We did a call to HDFC customer care for knowing the full form of VPS. All they say that it’s banking code related to credit/debit card transactions.
- IGST-VPS charges are only applicable to the Interest part your HDFC credit card EMIs.
- Hence, a rate of 18% applies to interest component of your Insta Loan, Insta Jumbo Loan, Smart EMI and other loan products under the credit card.
- Sometimes you may also get IGST-VPS debits for late payments and processing fees related to credit card loans.
- HDFC and other banks do not charge IGST on other regular transactions you make through the card.
I found the details of IGST rates on HDFC credit card from the official site. From July 2017, HDFC charges GST at 18.0 percent on specific transactions. Again, it is clear from the screenshot that the IGST rates, if applicable, reflect on the statement, only in the next billing cycle.
Finding the source of IGST-VPS on HDFC Bank credit card bill
The main reason for having IGST-VPS in your HDFC credit card bill is the presence loans and their EMI’s mapped to your account. For this reason, we have to check our existing credit card loans to locate the source of IGST-VPS charges.
Login to HDFC credit card section on netbanking site. Now, open “Loan Details” under “Enquire” section in the sidebar. As shown in the video, select your card number and proceed. The site will list all your existing EMIs. Select one and see the schedule of the payment for last month. Note down the Interest part of the EMI. Eighteen percent of the interest component of the EMI amount accounts for the IGST-VPS charge on your latest bill.
Apart from the EMI interest, HDFC Bank charges GST on various services related to Credit Card. If you apply for Insta Loan, Insta Jumbo Loan or Dial a Smart EMI, they charge GST on the processing fee amount. IGST charge is also applicable on FCY markup fee on international transactions.
Banks like ICICI, Axis, SBI, and all other credit card vendors also charge GST on credit card EMIs, but they may use different labels to mention the same in their bills.
Related: Check our article on HDFC Credit Card statement.We have information on how to open the password protected HDFC Credit Card bill, details like billing cycle & date, unbilled statement, and toll-free contact numbers, etc.