How to make a cash withdrawal without a card?Image credit source: Symbolic Photo.
The GST Council meeting was held on Monday under the chairmanship of Finance Minister Nirmala Sitharaman. Many important decisions were taken in the meeting. In this episode, the Council gave important information regarding the 18% tax on debit and credit card payments.
The GST Council was unable to reach any conclusion on this issue. In the end, no decision was taken on the online transaction tax and the matter has now been referred to the Adaptation Committee. At the next meeting, this proposal will be presented to the GST Council again along with the opinion of the Adaptation Committee.
Council member expressed objection to GST
Let us tell you that the committee has already given the option to the council. The committee is of the view that the said GST is not likely to impact the customers as the confusion was whether payment gateways would be exempted from paying GST on credit and debit card transactions of less than Rs 2,000. According to sources, it was made clear in the GST Council meeting that payment gateways are also included in this.
This means that transactions using credit or debit card or QR code up to Rs 2,000, on which aggregation fees are charged, will also attract 18 per cent GST.
The adaptation committee will consider
According to a report, over 80 per cent of online payments in India are less than Rs 2,000. During demonetisation in 2016, the government issued a notification stating that payment aggregators could not collect tax on services provided to merchants. Currently, aggregators charge merchants between 0.5% and 2% per transaction. In such a situation, if GST is implemented on small transactions, payment aggregators can charge this additional tax from their merchants.
After discussing all these issues, many members of the council raised objections to the online transaction tax. After the member raised objections, it was decided to send the matter back to the Adjustment Committee for consideration.
