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

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

The BJP-ruled central government is set to introduce a proposal to impose an 18% GST on online payments made through payment gateways for transactions under ₹2,000. Atishi expressed concern that this move would adversely affect lakhs of startups and small businesses nationwide.

“Imposing GST on small transactions will harm countless small businesses and start-ups,” Atishi stated, highlighting that until now, such transactions were 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 a cashless economy while simultaneously proposing new taxes on low-value transactions. “The BJP has repeatedly claimed to support digital payments, yet they are now pushing for this anti-business proposal,” she said.

She elaborated that if the GST is imposed on payment gateways, it would likely lead to increased costs for consumers, as companies may pass on the tax burden. This could directly impact small businesses that rely on platforms like Instagram and their own websites for transactions.

Atishi emphasised the need for the government to support small enterprises by offering tax exemptions rather than imposing additional burdens. She reiterated that the Kejriwal government will advocate for the interests of small startups and businesses in the GST Council meeting.