18% GST on Payment Aggregators for Sub Rs. 2000 Transactions likely after GST Council Meeting

The GST Council is contemplating imposing an 18% GST on services provided by payment aggregators for transactions under ₹2000. This decision, expected to emerge after the next council meeting, aims to streamline the tax structure for digital payment facilitators. Currently, payment aggregators act as intermediaries between merchants and customers, facilitating online payments. If the proposal is accepted, this could increase the cost of low-value digital transactions, which might impact small businesses and consumers. The proposed tax structure aligns with the government's efforts to improve tax compliance and revenue generation in the digital economy. However, industry stakeholders have expressed concerns, arguing that such a move could hinder the growth of digital payments, especially for micro and small enterprises that rely on lower-value transactions.