 GST Council meeting: 18% GST will be levied on credit card and debit card transactions below Rs 2000. Payment gateways will not get any exemption in this.
A big decision has been taken in the GST Council meeting regarding debit and credit card transactions. According to information received by CNBC Awaaz from sources, now 18% GST will be levied on credit card and debit card transactions below Rs 2000. Payment gateways will not get any exemption in this.
After this decision, 18% GST will be levied on the merchant fee of the transaction. The GST Fitment Committee is of the opinion that 18% GST should be levied on this income from payment aggregators. The committee believes that this type of GST is unlikely to affect customers.
GST will be collected from payment gateways and aggregators
Actually this GST will be collected from the payment aggregator. Payment aggregator is a third party platform and helps a merchant to accept payment amount. Razorpay, Paytm and Google Pay are examples of payment aggregate.
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Actually, payment aggregators charge some money from merchants for providing their services. This is 0.5-2 percent of every transaction. However, most aggregators keep it at 1 percent. The government charges service tax on this 0.5-2 percent amount. Therefore, it will not have a direct impact on common people. But it will create problems for small shopkeepers.
GST Council meeting held in Delhi
The GST Council meeting was held today under the chairmanship of Finance Minister Nirmala Sitharaman. The meeting focused on GST rates on insurance policies and important decisions were taken in the interest of customers.
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