GST Council May Consider Imposing 18% Tax on Payment Aggregators for Small Transactions Up to ₹2,000

The Goods and Services Tax (GST) Fitment Panel has suggested that payment aggregators, acting as intermediaries for transactions, should not be classified as banks. The GST Council, scheduled to meet on September 9, may consider imposing an 18% GST on payment aggregators (PAs) such as BillDesk and CCAvenue for small digital transactions up to ₹2,000 made via debit and credit cards.

According to a CNBC TV18 report, the GST Fitment Panel’s stance is that payment aggregators should be subject to GST, diverging from their current exemption for transactions below ₹2,000. This shift reflects a move towards including PAs in the GST framework, aligning with their role in the transaction process.