18% GST will be levied on credit card and debit card transactions below Rs 2000. Payment gateways will not get any exemption in this.
New Delhi. A big decision has been taken regarding debit and credit card transactions in the GST Council meeting. According to information received by CNBC Awaaz from sources, now 18% GST will be levied on credit card, 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 such GST is unlikely to affect customers.
GST will be collected from payment gateway and aggregator
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 GooglePay are examples of payment aggregator.
Actually, payment aggregators take some money from merchants for providing their service. This is 0.5-2 percent of every transaction. However, most aggregators keep it at 1%. The service tax that the government levies is on this 0.5-2% amount. Therefore, it will not have a direct impact on the common people. But it will create problems for small shopkeepers.
GST Council meeting held in Delhi
GST Council meeting was held today under the chairmanship of Finance Minister Nirmala Sitharaman. In this meeting, the focus was on GST rates on insurance policies and important decisions were taken in the interest of the customers.
