The much-concerning decision regarding the imposition of 18% GST on transactions under ₹2,000 for payment aggregators has been delayed, with the matter being referred to the GST Fitment Committee for additional scrutiny and analysis.
This was confirmed by Uttarakhand Finance Minister Premchand Aggarwal, who reiterated the need for further deliberation before any such tax-related decisions.
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The referral to the Fitment Committee highlights the government’s intention to carefully evaluate the issue, ensuring that the tax regime is structured in a way that fairly distinguishes between different categories of services.
Minister Aggarwal also touched upon other GST decisions, particularly concerning the aviation sector. He confirmed that helicopter services catering to pilgrims and tourists would be levied a lower GST rate of 5%, while chartered helicopter services will attract a higher GST rate of 18%. This differentiation in tax rates seeks to address the distinct nature of these services, ensuring that essential transportation for religious and tourism purposes remains affordable while premium services incur higher taxation.
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As businesses and payment aggregators await the outcome of the Fitment Committee’s review, this deferral signals the government’s cautious approach in balancing fiscal policy with practical business concerns.
The final decision is expected to have significant implications for small-scale transactions and could reshape how payment aggregators handle such low-value dealings in the future.
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Currently, payment aggregators charge anywhere from 0.5% to 2% on these transactions as payment gateway charges.
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