Payment Gateways Push for GST Waiver on Small-Value Transactions

Payment gateways are urging the government to waive GST on small-value transactions, citing the logistical and administrative challenges of handling micro-payments. Payment service providers argue that the compliance costs for processing low-value transactions, such as those under Rs 200 or Rs 500, often outweigh the GST collected. These small-value payments, typically for e-commerce or digital services, are becoming increasingly common. However, the GST framework has not been well-suited for such micro-transactions, leading to calls for a revision. The request aims to simplify operations and reduce the tax burden on businesses and consumers alike, thus promoting greater adoption of digital payments. The proposal is currently under review and could lead to a significant change in how small-value transactions are taxed under the GST regime.