look news india
New Delhi. A big decision has been taken in the GST Council meeting regarding transactions made through debit and credit cards. According to information received by CNBC Awaaz from sources, now 18 percent GST will be levied on credit card and debit card transactions less than Rs 2000. Payment gateways will not get any exemption in this. After this decision, 18 percent GST will be levied on the merchant fees of the transaction. The GST Fitment Committee is of the opinion that 18 percent GST should be levied on this income from payment aggregators. The committee believes that such GST is less likely 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 it helps the merchant to accept the payment amount. Razorpay, Paytm and GooglePay are examples of payment aggregators.
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% only. The service tax that the government imposes is on this 0.5-2% amount. Therefore, it will not have a direct impact on the common people. But this will cause problems to small shopkeepers.
GST Council meeting held in Delhi
The 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.