Does credit card interest attract GST?

Yes, in India, all interest and fees charged by credit card companies attract 18% GST, making the effective interest rate even higher than the stated 42%.

Credit Card Payoff Planner

Escape the 42% interest trap. Compare minimum payment vs aggressive repayment strategies with 18% GST awareness.

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Quick Summary: Credit Card Payoff Planner

Paying only the minimum amount on credit card debt (usually 5% of balance) is a 'Debt Trap'. With interest rates of 36% p.a. plus 18% GST on that interest, a ₹1 Lakh balance can take over 30 years to clear and cost over ₹4.2 Lakhs in total interest and GST combined. Paying even ₹5,000 extra per month can reduce the payoff time to less than 2 years.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.