The Delhi government is gearing up to oppose the proposed Goods and Services Tax (GST) on payment gateway transactions under ₹2,000, as announced by Delhi Finance Minister Atishi on Sunday. This decision comes ahead of the upcoming 54th GST Council meeting.
The Arvind Kejriwal-led government will vehemently oppose the central government’s proposal to impose an 18% GST on online payments made through payment gateways, highlighting that these transactions were previously exempt from GST. Atishi argues that this measure would have a detrimental impact on lakhs of startups and small businesses across the country, placing an excessive financial burden on the entrepreneurial community.
Emphasizing the significant contribution of small businesses to the Indian economy, Atishi points out that they account for 30 percent of the country’s GDP and 62 percent of employment. “Imposing GST on small transactions will harm countless small businesses and start-ups,” she stated, expressing concern over the central government’s recent move.
The GST Council meeting will also address other important issues, including taxation of insurance premiums, recommendations from the Group of Ministers (GoMs) on rate rationalization, and a status report on online gaming.
Atishi criticizes the central government for hypocrisy, stating, “When we buy something online using debit cards, credit cards, or net banking, if our transaction is below ₹2,000, it is not subject to GST. If the transaction exceeds ₹2,000, it attracts a GST of 18 per cent on the payment gateway fees.” She points out that the GST proposal contradicts the central government’s claims of promoting digital payments and a cashless economy.
In addition to the GST opposition, Atishi also takes aim at the BJP’s budget cuts for research. “In the last 10 years, under anti-education BJP, the research budget has been reduced from ₹70,000 crore to ₹35,000 crore,” she stated. The AAP leader criticizes the BJP’s stance on research, stating that no country in the world imposes GST on research grants given to educational institutions because they view research as an investment in the country’s progress, not as a business.
