Gateways seek GST waiver on low-value commissions
Payment gateway operators are urging the finance ministry to reconsider an 18% GST levy on commissions from small-value digital transactions (up to Rs.2,000). They argue that passing this tax burden onto merchants will hinder the growth of digital payments, especially in smaller towns. Tax authorities are seeking backdated GST from fiscal 2017-18, impacting major players like BillDesk and CCAvenue
Mumbai: Ahead of the GST Council meeting on December 21, payment gateway operators have made representations to the finance ministry against levying 18% GST on commissions earned on small-value digital payments up to Rs.2,000, multiple people in the know said.
Payment gateways have submitted that any tax levy will hurt the growth of digital payments as they will pass on the added burden to merchants.
