In 2016, service tax on small-value card transactions was waived to boost digital payments.
The GST Council may introduce an 18% GST on payment aggregator fees for card transactions under ₹2,000.
Payment gateways charge around 0.5% to 2% per transaction, with most averaging 1%.
Current Payment Gateway Fees
For small businesses, this could mean higher transaction costs and potentially less attractive card payments. g 1%.
Impact on Small Businesses
A ₹1,000 transaction with a 1% fee could rise from ₹10 to ₹11.80 with the new GST.
UPI, which remains unaffected by this GST, might see even greater adoption for small-value transactions.
Payment aggregators might pass the new GST costs onto merchants, leading to higher fees.
Impact on Payment Aggregators
The new GST could shift payment preferences, with UPI becoming more popular
Balancinecosystemg tax policies is key to maintaining a robust digital payment .
Conclusion & Future Outlook
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