Are no cost EMI really zero cost?

[6pack]

I was looking at this WD Red 4TB drive on Amazon costing Rs.8994

https://www.amazon.in/Passport-Portable-External-Hard-Drive/dp/B01LQQH85G

It has no cost EMI option and surprisingly, cost is less if I choose 9 months EMI. Cost comes out to Rs.8991 @ 991 per month if I choose SC card. How is this possible when the cc company is charging tax and gst etc on the item?

What's the catch here besides paying for almost a year?

 

[Zaibatsu]

I got 2.25L EMI limit from HDFC on my debit card because I'm a Classic customer. What to buy that would be worth the purchase? I bought iPhone X on 6 month EMI but then cancelled it as I already have iPhone 8 Plus

 

[Konquerror]

You will be charged GST on interest you pay. They will reimburse the interest upfront, but not GST. Longer the tenure of EMI, more the interest and thus more GST you need to pay.

 

[vivek.krishnan]

Depends on how you look at it. However, as @Konquerror mentioned, you will mostly end up paying the GST.

In a no cost EMI, the interest components are (mostly) absorbed by the manufacturer and not passed on to the buyer. For example, if you buy a phone worth 10K and the EMI usually is 12%, then the interest for 12 months is 1200 INR. The bank charges your card for ~8.9K but charges the EMI with 12% om top so the total cost with interest comes to 10K. And you end up paying GST on that EMI.