I made a transaction on 13th oct and opted for No-cost emi transaction. Next day the seller cancelled the order. The amount was refunded back on 16th. I was informed by Kotak through sms that if the transaction was an EMI one, then I would need to call customer care to get it cancelled. I called customer care and they took my request on 17th. However the emi was approved on 18th. Then based on the request they cancelled it on 20th. Now as some banks don't reverse the GST charges on conversion, I am fine with 35rs charge. However, Kotak has levied extra GST of 105rs saying that this is the GST on the first EMI. This doesn't make any sense because the EMI was cancelled before even the statement was generated. So are they allowed to do that? Should I try to fight it?
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Kotak is charging GST on interest payment of an EMI transaction which was cancelled and refunded before EMI conversion
- Thread starter Pankhuri
- Start date
D₹V
TF Prestige
Should be escalated & challenged for compensation in RBI ombudsman.
s1t2y3a3m6
TF Premier
Shopping in emi really a headache. So many t&c for same and here kotak is right, in emi you have to pay GST even it calculated 1 day of a month for cancelled order.
Looks like your shopping site was Flipkart. You are lucky that your emi order refund settled in time. Many users didn't get their emi refund to Card account for a long time after order cancellation in Flipkart.
So keep distance from Flipkart in emi transactions.
#aniket
TF Ace
ICICI, HDFC, Axis, Citi, & others are good in these thing, if I am not wrong.
Lotak in other side 👎
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#aniket
TF Ace
@Pankhuri Though I feel you shouldn't have been charged even not processing fees & GST, since this is full cancellation of order (when the amount is refunded> 90.01% ) is made and done before the generation of statment but not pre closure/ foreclosure is made. This practices is carried out by many banks.
The same is applicable when cardholder request for the cancellation in order to pay the full amount in one go.
P.S: Did you specifically ask to cancel the EMI trxn instead pre closure or foreclosure? They are bad at understanding these things bro, I think they had made foreclosure but this takes place after the 1st installment only or after the bill generation.😐
Nowhere, I found the duration of cancellation of EMI to avoid such charges in case of EMI.
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Yup, never faced such issue with these banks except citi bank with whom I don't have any experience.
In the refund sms it was mentioned that if this was converted into an emi, then I would need to contact Kotak and get them to cancel the emi separately. So I called the customer care, told them about the situation and asked them to cancel it.
The issue in my case was the reasonable delay b/w processing request. RBI sided with Kotak mostly because they went by the book, there was nothing wrong or unusual on their part. If the timeline was shifted back 2 days, then I won't be charged that extra GST.
#aniket
TF Ace
I too don't have any experience with Citi Bank but one has shared this information publicly even though the EMI cancellation was made from the customer itself.
Also, SBI don't levy any charges if the cancellation request is placed within 45 days from the trxn. Expiration of this period will cost foreclosure charges.
Actually as per Kotak, Instant EMI- Credit Card EMi conversion will take minimum 4 working days from the date of transaction. As soon as your order was cancelled you should have contacted, though they could have answered let the EMI conversion take place then only we can cancel it so that they can levy charges. 😂
At least when order cancellation (not EMI Cancellation) is made from the merchant itself nothing should be charged from every banks and the refund coming from a Merchant on a Cardholder's Card must be considered as a payment & must be adjusted, even if any charges levied, automatically towards EMI scheme opted by the cardholder & RBI could have considered this in the favour of cardholder.
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You sure about this? As far as I know, SBI always levies 3% +GST for emi cancellation unless cancelled by merchant.
Take it with a grain of salt as this was told to me by customer care and not NO or PNO - I am being charged because the emi came in statement, Kotak has already paid the GST to gobermint, so they can't really do anything now. Doesn't make much sense to me, but probably is true, just that NO, PNO and RBI BO say similar shit but with verbose jargon.
#aniket
TF Ace
@Pankhuri Yes bro, processing fee too will be reversed only in case of Merchant EMI Cancellation. One can choose to pre-close the Merchant EMI facility with pre-payment charges.
Earlier mistakenly, I had shared the precise info of Flexipay (screenshot attached) don't know the same is applicable on Instant EMI too or not but the same is also conveyed by the customer support also (screenshot attached) that no charges if cancellation is done within 45 days. (None instant EMI, where trxn is converted into EMI after the successful processing of payment). See the differences from the screenshot attached, however this screenshot belongs to someone else, found from the internet. 😂
Your statement was generated earlier before the closure request implementation? And Kotak paid GST instantly, wow. 😏
@Abhishek012 @NShah @VISHESH_BANSAL @S S V @D₹V @DocFixIt @varun__goel_ @ray8285 @CosmicCat @ARV @deep@vie @James
Guys, what're your take one this?
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What was the emi amount !
There was a post by tf sumanth..
Where he explained in no cost emi .
The seller gives discount but bank still get whole amount.
35 is emi conversion - gst right ?
If the first emi was processed internally & obv u can't see it .. then they would have put gst charges .
You are right about emi not billed bcz ur statement isn't generated .
But in cc its generated early but shown only when its bill generated for customer .
Maybe kotak is fast in this regard & others are slow 🦥 .
You can know bcz its bank internal policy ..
In offline mode no cost emi u can cancel & get full refund bcz their pos take 2+ days to settle then further process of emi
You are mistaken or there is a misunderstanding b/w us. When I said SBI charges 3%, I meant in the event of cancellation by the customer instead of merchant. Merchant EMI cancelled by merchant itself never had any issues in SBI.
Massive grain of salt.
kaptan sahab woh no cost emi ka funda pta hai, yeh woh nahi hai.
haan woh 199 pe lagne waala.
purushotham
TF Select
HDFC charged roughly ₹200 on cancelled order on Amazon.Even after order cancellation and EMI was active on HDFC App , to close the EMI I paid extra amount.
If not very next day was bill generation date and installment payment would have started.
Now I want to complain to RBI
On how HDFC charging amount on cancelled order with Amazon giving full refund
Any luck in complaing to RBI ?
I have hdfc consumer loan
Even after order cancellation and EMI was active on HDFC App , to close the EMI I paid extra amount.
If not very next day was bill generation date and installment payment would have started.
Now I want to complain to RBI
On how HDFC charging amount on cancelled order with Amazon giving full refund
Any luck in complaing to RBI ?
To close after just 3 emi
With penalty I had to pay almost equal to what I will pay at end of 2 year..
Wtf
Yes intrest was low but still bro ..if I m not saving 3-4k
Why will I fullpay
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