After demonetisation of higher currency notes, the Union government had abolished service tax on cashless purchases. Contrary to the move, claims of the government seem futile as retailers are charging service tax on purchase through credit/debit cards without any hindrance.

With the objective to promote cashless economy, the Centre government had waived service tax so that people took interest in cashless shopping. Initially, shopkeepers were not charging service tax from customers.
According to reports they are deducting service tax from customers without any restriction, who go for cashless transactions.

Moreover, service tax is also being levied on people, who use mobile applications, to pay online for movies, rail tickets and other services. Ironically, there is no complaint centre or helpline to check such violations.
Robert Singh, a resident of the Batala road said, “I bought a smartphone for Rs 6,000 last week. The retailer deducted Rs 6,200 from my debit card. When I asked him why did he charge Rs 200 more than the MRP of the mobile, he replied that it was service tax on purchase of the product.”

Monica, a resident of Court road said, “I had to pay service tax on the microwave, which bought recently. When I asked the retailer that the government had exempted service tax on cashless purchase he said the exemption limit was up to shopping of Rs 2,000. It was really shocking for me.”

Hardeep Singh, resident of the Majitha road said, “Petrol pumps are also charging service tax on fuel purchased through debit/credit cards. I am surprised that why has the government not acted against such retailers till now? There is no helpline number to complain against such commercial establishments.”

Rajiv Kumar, a resident of Ranjeet Avenue said, “The government must make clear whether there is exemption for common public on service tax on cashless shopping or not.” He said, “We are already facing many problems after demonetisation. There is no relief from inflation yet.”