GST Council to study 18% GST on sub-Rs.2,000 transactions via payment apps
The 54th GST Council is scheduled to meet on September 9 in New Delhi to deliberate upon a proposal to clarify that an 18% GST should be levied on payment aggregators whose platforms are used for digital payment transactions of less than Rs.2,000 via debit cards, credit cards, and other payment methods, according to sources.
Sources indicate that this clarification is anticipated following detailed deliberations by the council-nominated fitment committee.
“The fitment committee is of the view that payment aggregators such as PineLabs, Razorpay, etc, whose platforms are used to conduct digital payments—such as QR code scanning, POS machines, net banking, etc.—for transactions of less than Rs.2,000 via debit cards, credit cards, etc, will need to pay GST on the income earned from facilitating these transactions,” sources said.
Therefore, the income earned by payment aggregators is expected to be charged at 18% GST, as per the fitment committee's recommendation. This proposal will be presented to the GST Council, which will decide whether to accept, reject, or defer it before it can become law, sources added.
