Delhi to oppose GST on payment gateway transactions below ₹2,000

Delhi Finance Minister Atishi has announced that the Arvind Kejriwal government will strongly oppose the proposed Goods and Services Tax (GST) on payment transactions worth less than ₹ 2,000 during the upcoming 54th GST Council meeting.

The BJP-ruled central government is set to come up with a proposal to impose 18% GST on online payments made through payment gateways for transactions below ₹2,000. Atishi expressed concerns that the move would adversely affect lakhs of startups and small businesses across the country.

“Imposing GST on small transactions will hurt countless small businesses and start-ups,” Atishi said, pointing out that such transactions were previously exempt from GST. She noted that small businesses contribute significantly to the economy, accounting for 30% of India’s GDP and 62% of employment.

Atishi criticised the central government for its contradictory stance on promoting digital payments and cashless economy while proposing new taxes on low-value transactions. “The BJP has repeatedly claimed that it supports digital payments but is now pushing this anti-business proposal,” she said.

She explained that if GST is imposed on payment gateways, it will likely lead to higher costs for consumers as businesses can pass on the tax burden. This could directly impact small businesses that rely on platforms like Instagram and their own websites to make transactions.

Atishi stressed on the need for the government to support small businesses by offering tax exemptions instead of imposing additional burdens. She reiterated that the Kejriwal government will champion the interests of small startups and businesses in the GST Council meeting.