I purchased a phone from Amazon(screenshot attached for the details), the cost was 11,999/- after an instant discount and No no-cost EMI discount it was coming to 10703/-. But they have charged interest, and GST, and the cost is going around 12000/- , I cannot understand the calculations. Can someone help me with this.
Interest on No-cost EMI in SBI Pulse
- Thread starter hrushup
- Start date
_rohitsoni
KF Expert
Ok So your initial total was Rs. 11999, Instant Bank Discount is something you actually got, NC EMI discount is just the interest portion which they've reimbursed to you.
So actually you got the product for 11999-1000=10999.
Now, if you ask your bank, they'll mention that its a normal EMI transaction for Rs. 10703 on which they'll charge Rs. 295.68 as interest. This is the same interest which was initially reimbursed to you. So technically you paid no interest on loan as amazon already reimbursed it for you.
It seems that you are using SBI card for EMI, they'll show the interest bifurcation just for the sake of it, your bill amount will be EMI amount + gst on interest. So, if there are no other transactions bill should be 3666.33+26.49= Rs. 3692.82
So actually you got the product for 11999-1000=10999.
Now, if you ask your bank, they'll mention that its a normal EMI transaction for Rs. 10703 on which they'll charge Rs. 295.68 as interest. This is the same interest which was initially reimbursed to you. So technically you paid no interest on loan as amazon already reimbursed it for you.
It seems that you are using SBI card for EMI, they'll show the interest bifurcation just for the sake of it, your bill amount will be EMI amount + gst on interest. So, if there are no other transactions bill should be 3666.33+26.49= Rs. 3692.82
My current EMI is EMI amount + interest + GST which is 3666 + 147 + 243 = 4056 and the total is 12168/- that's why I am confused.
_rohitsoni
KF Expert
Oh it shouldn't be the case. Can you share screenshot of Amazon order detail page and screenshot of credit card statement?
Once you realise that No cost EMI still has costs attached then it will be easier to understand. You have only got a discount of Rs 1000 on the product and from there the following will be deducted ultimately:
1) Processing fees, if any + 18% GST on it.
2) GST of 18% in the interest portion in 3 months. As the interest portion will reduce each month, so will GST
Hopefully, by end of it, your net discount will work out to Rs 500 or so.
Similar threads
