Nowadays, most people prefer to pay their electricity bills online from home. But if you are also using a debit or credit card, then be careful. While paying the bill, consumers are charged a convenience charge and 18 percent GST on card transactions. On the other hand, no additional tax has to be paid on paying bills through UPI, net banking, BHIM app, and e-wallet.
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No tax is levied on bills up to Rs 4000
Under the new system of UPPCL, no charge will be levied on payment of the electricity bill up to Rs 4000 by debit or credit card. But as soon as the bill amount exceeds Rs 4000, the charge becomes applicable. 0.90 percent transaction charge and 18 percent GST will be levied on payment by debit card (except RuPay card). This rate will be one percent and 18 percent GST on payment by credit card.
How much extra will you have to pay on a bill of Rs 4100
If your electricity bill is Rs 4100, then you will have to pay an additional transaction charge of Rs 37 and 18 percent GST on it if you pay by debit card. On the other hand, if you pay by credit card, a charge of Rs 41 and 18 percent GST will be added to it. In this way, consumers have to pay more than the actual bill.
One and a half lakh consumers make online payments every month
According to Kesco’s data, about one and a half lakh consumers pay their electricity bills online every month. A large number of people make payments by card due to a lack of information, and file a complaint after the extra charge is deducted. On the other hand, many consumers still prefer to pay the bill in cash by going to the cash counter.
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What do the officials say
Kesco IT Department’s XEN Sarvesh Pandey says that under the UPPCL guidelines, it is mandatory to pay transaction charge and GST on bills above Rs 4000 by debit and credit card. At the same time, options like UPI, Net Banking, and BHIM App are completely free, and consumers should use them.