[basubhatta]

Originally Posted by vikred

To be frank, 0.75 is too less to make any difference. Most public usually get their two wheelers filled up with ₹100-200 which gets ₹0.75 to ₹1.50 discount: very very insignificant.

Absolutely correct. You have mentioned the case who purchase small amount. What about bulk purchasers? For example: bus owners, taxi owners? Will they deposit the earned cash in the bank, then pay 10% (or more) tax to avail the benefit of 0.75% for electronic transaction? I think Government is confused. Govt. should rather restrict cash transactions completely for bulk purchase.

[riteshritesh]

Originally Posted by Moto_Hill

We will have to wait for CBEC notification to get clarity.

Here it is:
GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) NOTIFICATION
No. 52/2016-Service Tax New Delhi, the 8th December, 2016
G.S.R.….(E).-In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.25/2012-Service Tax, dated the 20thJune, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 467 (E), dated the 20thJune, 2012, namely:-
In the said notification, in the opening paragraph, after entry 63, the following entry shall be inserted, namely,-
“64. Services by an acquiring bank, to any person in relation to settlement of an amount upto two thousand rupees in a single transaction transacted through credit card, debit card, charge card or other payment card service.
Explanation. — For the purposes of this entry, “acquiring bank” means any banking company, financial institution including non-banking financial company or any other person, who makes the payment to any person who accepts such card.”
[F. No. 356/21/2016-TRU] (Anurag Sehgal) Under Secretary to the Government of India
Note:-The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 25/2012 - Service Tax, dated the 20th June, 2012, vide number G.S.R. 467 (E), dated the 20thJune, 2012 and last amended vide notification number 47/2016 - Service Tax, dated the 9th November, 2016 vide number G.S.R. 1056 (E), dated the 9th November, 2016

[livetodrive]

I filled up my tank today with debit card and a transaction charge was deducted by my bank. Not sure how and when this 0.75% will be returned. No changes so far.

[FanaticOnWheels]

This will have to be implemented strongly at the source. I see a problem if this is left to the pump attendants to punch in the 0.75% discount everytime a card swipe is done. They might not do it all the time, and not all consumers might be aware of this discount being doled out. This should be taken care of at the source, so would be interesting to see how they implement it.

[nitinralli]

Originally Posted by vikred

I've been using Citibank Indian Oil credit card for fuel since many years. I think I earn about ₹3,000 to 4,000 worth of petrol every year from the points I gain from all purchases (fuel, groceries, bills, etc.,).

Overall, I get about 4-5% cashback for fuel. With 0.75% more, that's going to be more beneficial, but it remains to be seen how this discount scheme is implemented. To be frank, 0.75 is too less to make any difference. Most public usually get their two wheelers filled up with ₹100-200 which gets ₹0.75 to ₹1.50 discount: very very insignificant.

Exactly. I too have been using Citibank Indian Oil card since ages and every year earn around 6K rupees worth fuel free as points earned. Now with this .75% cashback, it even more sweeter deal to have these CC. I am shocked to see that there are still people who do not use these cards. High time we start doing it now.

[Moto_Hill]

Originally Posted by riteshritesh

Here it is:
GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) NOTIFICATION

Here goes the hope of saving some bucks on eating out/mobile bills etc

While it's understandable that making it applicable for all the services would have given way to several loopholes for evading tax, the government should have picked few sectors dealing mostly in cash.

[GLAD73]

There seems to be no clarity on how exactly this .75% discount is applied for fuel purchases. Just filled up today and the pump attendant flatly refused to acknowledge any sort of discount.

[blackasta]

I filled up on Saturday 10th December from an IndianOil pump in Rajarhat New town. Paid via HDFC bank CC. Online statement suggests that I was first charged the cost+surcharge+service tax on the surcharge, and then was refunded the surcharge by my bank (which has always been the case).
No discount of 0.75% anywhere.
And the pump attendants were clueless about any discount.

[Durango Dude]

My IOC Citibank credit card rewards me with free fuel with turbo points accumulated! I've been using only cards for fuel for more than a decade! This 0.75% would be a welcome addition and would keep the penny pinching miser in you smiling!

[sdp1975]

The private players certainly won't be happy with this move. If I had to use my card , I would avoid using them at Reliance , Shell etc. as I would not get the 0.75% discount. Reliance/Shell now have to cut down their margins to stay competitive . This affects private investment and employment in the sector.

To be fair , the government should've extended the subsidy to private players and recompensed them. In it's present form , this subsidy clearly distorts the market.

[YCJ]

Post deleted by the Team-BHP Support : Please do NOT post messages that add little or no informational value to the thread. We need your co-operation to maintain the quality of this forum.

Please read our rules before proceeding any further. We request you to post ONLY when you have something substantial to add to a discussion.

[sdp1975]

The discount will start from midnight tonight and would be by way of cash back which will be credited to the buyer's account in three days from the transaction, said Indian oil Corp, the nation's largest fuel retailer.

The 0.75 per cent discount on payments made using either credit/debit cards, e-wallets or mobile wallets will translate into a rebate of 49 paisa a litre on petrol and 41 paisa on diesel.

Source

[novicefreak]

Here is the latest on how cashback / discount is implemented.

http://www.financialexpress.com/econ...scount/472491/

"Customers making digital payment for purchase of petrol and diesel will get a discount of 0.75 percent on the sale price of fuel from today. In a statement, the Indian Oil Corporation has said the amount of discount will be credited to customers account by way of cash back within maximum three working days of the transaction."

[itwasntme]

Excellent move in my opinion because NOTHING works better in India than a MONETARY incentive. I have an approximate annual fuel spend of around 150k exclusively using credit/loyalty cards and the cashback will come to 11k!

I foresee a major take-up of cashless (credit/debit/prepaid loyalty/wallet) transactions at state retailers. However, GoI should extend to private players too in the interest of fairness.

[sdp1975]

Originally Posted by itwasntme

I have an approximate annual fuel spend of around 150k exclusively using credit/loyalty cards and the cashback will come to 11k!

0.75% of 150 k comes to around 1K cashback - maybe the 11K was a typo in your post ?

I also believe the discount is a temporary measure. It's a matter of time before it's pulled back.