The annual fee (also called the renewal fee) is charged once a year, usually on the anniversary of the card being issued. 18% GST is added on top, so a ₹1,000 fee costs ₹1,180.
Many banks waive the fee if you spend a set amount on the card in the year, often ₹1 lakh to ₹5 lakh. A card is worth its fee when the rewards and benefits you actually use are worth more than what you pay.
Example
A card with a ₹2,500 fee costs ₹2,950 with GST. If it returns 2% on ₹20,000 a month, that is ₹4,800 a year, so it pays for itself.
