Various payment vendors including BillDesk and CCAvenue have been issued GST demand notice relating to the fee charged to merchants for digital transactions of less than Rs 2000 as per a certain report on 7th September.
Vishwas Patel, Joint Managing Director of Infibeam Avenues, confirmed that CCAvenue, operated by Infibeam Avenues, received a show cause-cum-demand notice from GST authorities.
The controversy stems from a previous government notification during demonetization, which exempted payment aggregators from charging GST on transactions below Rs 2,000. The dispute now focuses on whether fees for transactions through debit and credit cards should fall under this exemption, as UPI and RuPay card transactions remain exempt.
This development comes ahead of the upcoming GST Council meeting, where a decision is expected on whether an 18% GST should be levied on sub-Rs 2,000 digital payments made through aggregators such as Pine Labs and Razorpay. The Council will base its decision on the recommendations of the rate fitment committee, which will clarify the taxability of these services.
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