1. What is ICICI Credit Card EMI?

The ICICI Credit Card EMI (Equated Monthly Installment) allows you to convert large purchases into smaller monthly payments. The bank charges interest on the outstanding amount, and GST is applicable on the interest component.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( P \) — Principal amount (Rs)
• \( R \) — Monthly interest rate (annual rate / 12, as decimal)
• \( N \) — Loan tenure in months
• \( I \) — Interest portion (Rs)
• \( GST\ Rate \) — 0.18 (18% GST)

Explanation: The first part calculates the standard EMI, while the second part adds the GST component on the interest.

3. Importance of GST on Credit Card EMI

Details: Since 2017, GST is applicable on the interest portion of credit card EMIs at 18%. This additional cost must be factored in when calculating your total repayment amount.

4. Using the Calculator

Tips: Enter the principal amount in Rs, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why is GST charged on credit card EMI?
A: As per Indian tax laws, GST is applicable on all financial services, including the interest charged on credit card EMIs.

Q2: What is the current GST rate on credit card EMI?
A: The current GST rate is 18% on the interest component of the EMI.

Q3: How is GST calculated on EMI?
A: GST is calculated on the total interest payable over the loan tenure, then divided equally across all EMIs.

Q4: Can I avoid GST on credit card EMI?
A: No, GST is mandatory on all credit card EMIs as per government regulations.

Q5: Does the EMI amount change if GST rates change?
A: Yes, if the GST rate changes, the EMI amount will be adjusted accordingly for new conversions.