Payment Aggregators processing Payments less than Rs. 2000 eligible for GST Exemption, not Applicable to Payment Gateways: FM on GST Council

The GST Council has clarified that payment aggregators processing payments below the eligibility threshold for GST exemption will not be entitled to the exemption available to payment gateways. This means that payment aggregators who process small-value transactions will still be required to comply with GST regulations. The clarification ensures that only those payment aggregators meeting the prescribed criteria for exemption can avail themselves of the benefits. This move aims to streamline the payment processing sector under GST by setting clear boundaries for exemptions. The decision impacts various fintech and payment services, as they now have a defined framework for GST compliance, ensuring fairness and uniformity across the sector.