GST on credit-debit card: 18% GST on payment through cards, will this put impact on your pocket?

GST on credit-debit card: This is the 54th meeting of the GST Council held today in Delhi. While this meeting was held today under the chairmanship of Finance Minister Nirmala Sitharaman. The main of the meeting is to see GST rates on insurance policies, and take some important  decisions for interest of customers. However big decision has been taken regarding debit and credit card transactions in the GST Council meeting today, about the credit-debit card, now 18% GST will be levied on payment through cards

GST Council take decisions regarding GST matter

A big decision has been taken regarding debit and credit card transactions in the GST Council meeting 18% GST will be levied on payment through credit-debit card credit-debit card, but it will not be collected from customers, from sources, now 18% GST will be levied on credit card, debit card transactions below Rs 2000.

18% GST will be levied on the merchant fee

In the meanwhile 18% GST will be levied on the merchant fee of the transaction. The GST Fitment Committee is of the opinion that 18% GST should be levied on this income from payment aggregators. The committee believes that customers are unlikely to be affected.

Payment aggregators charge money from merchants

While  payment service providers, take some money from merchants for their services. This is 0.5-2 percent of every transaction. However, most aggregators keep it at 1 percent. The service tax that the government takes is taken on this 0.5-2 percent amount. Therefore, it will not have a direct impact on the common people.

Also read: GST Council Meeting: Key Topics on the Agenda

Council meeting held in Delhi

The GST Council  meeting held at Sushma Swaraj Bhawan in Delhi. Finance ministers of various states and senior officials of the tax department had been participated.