If you also pay through credit or debit card, this news might come in handy for you. In fact, paying through debit or credit card can now cost you dearly. The government may impose 18 percent GST on payments up to Rs 2,000. The GST Council meeting will be held on September 9 and many decisions related to GST will be taken in this meeting.
It is believed that in this meeting, the government might discuss the proposal to impose 18 per cent GST on payment aggregator companies like BillDesk and CCAvenue. If this happens, you may have to pay additional charges even on debit or credit card payments of less than Rs 2,000.
Paying more than 2000 rupees will be expensive
Major payment aggregators like BillDesk and CCAvenue have received notices from GST officials. According to Economic Times, it demands GST on fees charged to merchants for processing digital transactions of less than Rs 2,000. Over 80 per cent of total digital payments in India are less than Rs 2,000. During demonetisation in 2016, through a government notification, payment aggregators were prohibited from charging tax on services provided to merchants on small transactions.
If the GST Council agrees to impose GST on payments up to Rs 2,000, it will impact paying customers. Payment aggregators currently charge merchants between 0.5 and 2 per cent for each transaction. In such a situation, when GST is implemented, they can impose additional charges on merchants, i.e. customers.
UPI payment will not be affected
In case of small transactions, it will not have any impact on those making payments through UPI. If the government imposes GST, then the aggregators can pass on the burden to the customers. In such a situation, the customers will have to pay a higher amount. However, this amount will have to be paid only through payment made through card (debit and credit) and net banking. There will be no charges for making payments through Unified Payments Interface. Please note that there is no charge under UPI.
