The Goods and Services Tax (GST) Council has not yet finalized a decision on the proposal to impose an 18% GST on transactions under Rs 2,000 that are processed by payment aggregators.
Uttarakhand Finance Minister Premchand Aggarwal stated that the matter, which could affect small online payments, will be referred to the GST fitment committee for further review. At the recent GST Council meeting, discussions took place regarding a proposal to impose an 18% GST on the income of payment aggregators from transactions under Rs 2,000.
However, the council did not reach a final decision and decided to refer the matter to the fitment committee for further analysis and recommendations. The committee will examine the potential implications and prepare a comprehensive report for the council's review.
The proposed tax on smaller online payments would impact payment gateways and aggregators involved in processing these transactions.