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Old 9th December 2020, 05:30   #4066
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Default Re: The Credit Card Thread

Quote:
Originally Posted by logicalidiot View Post
Shouldn't the GST amount be going to the govt. If you're indeed being charged 1% surcharge + 18% GST, then I don't think the banks would reverse the GST. It would mean that the bank is paying the GST for us, which is unlikely.
GST is 18% of surcharge. So if surcharge is zero (after reversal), GST would be zero as well.

I have seen this in plenty of other cases ( e.g credit card annual fee reversal) - bank does refund GST as well.
I have certainly seen exceptions as well ( HDFC bank itself), where they didn't reverse the GST. In this particular case it was after 3 months and the bank gave an excuse that they had already paid GST to govt since its 3 months. However in another case (standard chartered), I have seen them refund GST portion also even after 3 months.

So there is no uniformity here..
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Old 9th December 2020, 10:37   #4067
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Default Re: The Credit Card Thread

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Originally Posted by rjainv View Post
GST is 18% of surcharge. So if surcharge is zero (after reversal), GST would be zero as well.

I have seen this in plenty of other cases ( e.g credit card annual fee reversal) - bank does refund GST as well.
I have certainly seen exceptions as well ( HDFC bank itself), where they didn't reverse the GST. In this particular case it was after 3 months and the bank gave an excuse that they had already paid GST to govt since its 3 months. However in another case (standard chartered), I have seen them refund GST portion also even after 3 months.

So there is no uniformity here..
There is uniformity and that is HDFC does not refund the GST already deducted from your account regardless of the timing or the reason. They have a million excuses to not to refund the same

Many other banks refund it. And most of the time they do it immediately after refunding the main charge that was the basis for the GST.

Speaking from personal experience with HDFC and multiple other private banks. I find HDFC practices to be customer unfriendly at times and hence I avoid it as much as possible.
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Old 9th December 2020, 11:06   #4068
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Default Re: The Credit Card Thread

There was a time, when banks did not refund GST even when the charges were reversed. I have faced it and the excuse was that once the GST is paid it is practically impossible to reverse it. HDFC is one bank that rarely refunds the GST hence I have stopped using HDFC cards.

Now a days things hav improved, and some (not all) banks reverse the GST also. AMEX is what I use to buy petrol from AMEX approved stations and I get full refund.
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Old 9th December 2020, 12:30   #4069
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Originally Posted by Aroy View Post
Now a days things hav improved, and some (not all) banks reverse the GST also. AMEX is what I use to buy petrol from AMEX approved stations and I get full refund.
This is what makes zero sense to me. When some banks can do it, why not all. Amex card used at HP pump waives off surcharge and GST but HDFC and ICICI Amazon Pay still charge the GST on 0 surcharge.

Is this some scam where banks use this GST paid my millions of transactions with 0 surcharge to offset something else.
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Old 9th December 2020, 12:35   #4070
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Originally Posted by AZT View Post
This is what makes zero sense to me. When some banks can do it, why not all. Amex card used at HP pump waives off surcharge and GST but HDFC and ICICI Amazon Pay still charge the GST on 0 surcharge.

Is this some scam where banks use this GST paid my millions of transactions with 0 surcharge to offset something else.
Yes I have thought about it multiple times - could there be an accounting hack that HDFC is using to offset some of its GST obligation and hence report better profits? But then I am not an accounting expert and I have limited knowledge of this area and hence didn't dwell further into it.
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Old 9th December 2020, 12:44   #4071
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Default Re: The Credit Card Thread

GST that we pay eventually goes to government. Banks do not have any control over that.

My guess is the way these CC issuers report this surcharge to the government. Some "waive off" and others refund. If the surcharge is waived off, the banks don't need to pay GST as there's no charge in the first place.

But if the surcharge is refunded, then it is already calculated and details shown as part of their GST submissions and then they are returned.

Experts can confirm, but I guess they can claim this refund as loss/investment and reduce their overall taxes.

This difference can be observed in other places as well.
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Old 9th December 2020, 13:03   #4072
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Default Re: The Credit Card Thread

Recently I was charged AMC of Rs10000 (plus Rs1800 GST) for my HDFC DB card. After 3 months of multiple whatsapp message interactions, they finally reverted back Rs10000 first and then after the monthly statement was generated, they reverted back the GST portion as well.
I donít know whether this can be considered same as fuel surcharge + GST, but I still thought of sharing this information here.
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Old 9th December 2020, 15:48   #4073
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Default Re: The Credit Card Thread

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Originally Posted by whitewing View Post
For all banking related communication, it is best to have a record. So, would suggest you document the request via e-mail. This will come in handy at the time of escalating the issue to the next level.
Below is what happened:

Quote:
Originally Posted by binand View Post
With Citi:
  1. Write out a letter stating what you want clearly ("please cancel my credit card with number...").
  2. Include your contact details - phone and email.
  3. Sign it, date it, seal it in an envelope.
  4. Go to your nearest Citi ATM. The dropbox there has 3 slots - one of them is for correspondence (the other two are for deposits and CC payments). Drop your sealed envelope in the right slot.
I guess I have ran out of options that I have to do this now.

Cheers,
Vijay
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Old 10th December 2020, 09:33   #4074
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Default Re: The Credit Card Thread

HDFC has begun sending out regret/rejection letters to credit card applicants.

" We wish to inform you that your application has been considered in line with the Bank's internal credit policy (which is based on a combination of financial and related criteria and/or statistically determined scores to assess credit eligibility) and operating/credit processes ( which include a combination of verifications, credit bureau reports and document verifications).

We regret to inform you that we are unable to approve your application as it does not meet the above mentioned internal criteria of the Bank.

Please be assured that our inability to approve the credit card application does not reflect in anyway on your credit standing or your financial stability."

News article
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Old 13th December 2020, 12:07   #4075
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Originally Posted by na_agrawal View Post
Hello BhPians -

....So all in all, HDFC charged me a 29 INR extra for paying my fuel bills with CC?
God knows how much money I have paid till date in such EXTRAS
I have been using my CC for almost everything for the last 5-6 years..
Thanks for posting it...I see the same on my HDFC card (infinia) swipes as well.
But, pleasantly surprised to see that AMEX (I have a MRCC card) has refunded the entire amount plus some more as cashback due to some offers.
Quote:
Originally Posted by vvijay View Post
Below is what happened:
So much for digital banking. All the best! And please send it by registered post/courier so that you have evidence of the same.

Quote:
Originally Posted by vinu_h View Post
HDFC has begun sending out regret/rejection letters to credit card applicants.
.....
Please be assured that our inability to approve the credit card application does not reflect in anyway on your credit standing or your financial stability."

News article
Such a load of verbose garbage isn't it? It sounds as though HDFC after due consideration is rejecting the application, while they are BARRED from issuing new cards due to shortcomings on their end!
Some times a simple sorry, we are not in a position to take your request due to constraints on our end would get a more sticky customer.
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Old 19th December 2020, 02:42   #4076
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Default Re: The Credit Card Thread

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Originally Posted by na_agrawal View Post
Hello BhPians -

I have a query regarding my long time credit card (CC) - HDFC Regalia Visa.

Please check the below snips and you'll understand the issue -

Attachment 2090524

Attachment 2090523

These 2 are snips from my Credit card statement showing the Petrol bill amounts. They are 1537 & 3715 INR (as reflected in my statement).

Now below is the snapshot from my personal entry made into my Fuel tracking app. Obviously, there is a price difference in the statement as - "petro surcharge".

This petro surcharge is supposed to be refunded to me immediately by the bank, which is also shown in the statement snips. So the final amount comes out to be -

1537 + 3715 - 15 - 37 = 5200 INR (as per the CC statement)

1499 + 3672 = 5171 INR (as per the actuals)

Attachment 2090522

So all in all, HDFC charged me a 29 INR extra for paying my fuel bills with CC?

God knows how much money I have paid till date in such EXTRAS
I have been using my CC for almost everything for the last 5-6 years.

Have you guys noticed something like this? Is it normal or I can confront the HDFC officials? Please any one of you with enough experience in this regard, can you arm me with the correct weapon against this?

-NA
One of my office colleagues discussed this with me some months back. He claimed that he paid Rs. 20-30 extra everytime like this. I checked with my credit card statements and SMSs from bank which I received after refuelling. I have been paying around Rs. 5-6 extra every time I fill up. Since the amount is pretty low, I ignored it for the convenience it gives. My fuelling is of around ₹3000 everytime.

Also, I wonder if this is the case even with debit card payments? Because the money debits real time from your account unlike credit card where they take their sweet time to put the fuel amount in statement.
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Old 19th December 2020, 08:42   #4077
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Default Re: The Credit Card Thread

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Originally Posted by kavensri View Post
Recently I was charged AMC of Rs10000 (plus Rs1800 GST) for my HDFC DB card. After 3 months of multiple whatsapp message interactions, they finally reverted back Rs10000 first and then after the monthly statement was generated, they reverted back the GST portion as well.
I donít know whether this can be considered same as fuel surcharge + GST, but I still thought of sharing this information here.
That must be card renewal fee. How did you mange to get them to reverse the charges ?
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Old 19th December 2020, 09:01   #4078
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Originally Posted by F150 View Post
That must be card renewal fee. How did you mange to get them to reverse the charges ?
There is a small story behind this.
In June, someone from HDFC called and told me about one offer. If i open a basic savings account (with min balance of 10k) with them, then they would convert my DB CC to LTF. I dully accepted that offer and being the lockdown period, everything was done online.
But, they did not convert it to LTF even after many weeks (for reason known to them only). They never said, they will not do it, but kept on telling me that it is under process. Then sometime in August, i was charged the annual renewal fee also. Still they kept on telling me that it is under process. Then in september, i told them clearly, if it is not done within next couple of weeks, i am going to cancel my CC. At that time, i did not had any hopes of getting it converted to LTF. And just before that deadline, they did the reversal.

And, in between, i had sent couple of emails to HDFC CC about my ordeal. They were so blunt in their response stating that my CC cannot be converted to LTF and if i wish, i can cancel my CC. Even after me telling them about the offer, they said my CC cannot be converted to LTF.
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Old 19th December 2020, 10:51   #4079
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Default Re: The Credit Card Thread

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Originally Posted by kavensri View Post
Then in september, i told them clearly, if it is not done within next couple of weeks, i am going to cancel my CC[...] And just before that deadline, they did the reversal.

And, in between, [...] They were so blunt in their response stating that my CC cannot be converted to LTF and if i wish, i can cancel my CC.
Seems to me that they figured their permission to issue cards would be rescinded by the RBI and therefore they have to retain all of their existing cardholders. :-)
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Old 19th December 2020, 11:34   #4080
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Originally Posted by kavensri View Post
And, in between, i had sent couple of emails to HDFC CC about my ordeal. They were so blunt in their response stating that my CC cannot be converted to LTF and if i wish, i can cancel my CC. Even after me telling them about the offer, they said my CC cannot be converted to LTF.
So you still have your Diner's Club Black Card and it is LTF ?
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