Atishi says she would oppose taxation of online payments made through gateways – ThePrint – ANIFeed

New Delhi (India), September 8 (ANI): Delhi Chief Minister Atishi on Sunday said the central government will bring a proposal to tax all online payments below Rs 2,000 made through payment gateways at 18 per cent during the GST Council meeting scheduled for Monday.

She added that currently, online payments made via payment gateways are not subject to taxation.

“(Taxing them) will hurt small businesses and startups. We will oppose this proposal in the GST Council meeting tomorrow,” she told reporters.

She also added that she would oppose taxation of research grants awarded to educational institutions.

“In August 2024, the Central government had issued show cause notices for non-payment of GST. The Central government is demanding GST on research grants received during 2017-2024, including Punjab University and IIT Delhi… No country in the world levies tax on research grants… The Central government has reduced the amount of research grants…” she said.

“Now that educational institutions are raising grants on their own, through private or foreign institutions, the central government wants to bring these grants under GST as well. The Delhi government will raise this issue in the GST council tomorrow and demand that research grants be exempted from GST…” she added.

The 54th meeting of the Goods and Services Tax (GST) Council will be held on September 9.

The GST Council, comprising the Union Finance Minister and representatives of all states and union territories, was constituted to decide on various aspects of GST, including tax rates, exemptions and administrative procedures.

The last meeting of the GST Council this year was held on June 22, 2024.

The GST system has removed the inefficiencies and complexities of the previous archaic tax system. Over the years, GST has, among other things, simplified compliance and reduced the cascading impact of tax. Before July 1, 2017, the indirect tax system was highly fragmented. The Centre and the States taxed goods and services separately.

The GST Council, a federal body comprising the Union Finance Minister as chairman and finance ministers of all states as members, played its role in the forum.

A Finance Ministry study suggests that consumers have saved at least four per cent of their monthly household expenditure in aggregate after GST. As a result, consumers are now spending less on everyday consumer items like cereals, edible oils, sugar, sweets and snacks. (ANI)

This report is generated automatically by ANI news service. ThePrint is not responsible for its content.