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GST Council Meeting: Delhi Minister Atishi to Oppose Tax on Online Payments

Delhi Minister Atishi announced on Sunday that she would oppose a proposal by the central government to impose an 18% tax on online payments below Rs 2,000 made through payment gateways at the upcoming GST Council meeting scheduled for Monday. Addressing the media, Atishi emphasized that such a tax would negatively impact small businesses and […]

Minister Atishi
Minister Atishi

Delhi Minister Atishi announced on Sunday that she would oppose a proposal by the central government to impose an 18% tax on online payments below Rs 2,000 made through payment gateways at the upcoming GST Council meeting scheduled for Monday. Addressing the media, Atishi emphasized that such a tax would negatively impact small businesses and startups.

“Currently, online payments made through payment gateways are not taxed. Imposing such a tax would hurt small businesses and startups. We will oppose this proposal tomorrow at the GST Council meeting,” she stated during the press conference.

In addition to opposing the tax on online payments, Atishi also voiced her objections to the proposed GST on research grants given to educational institutions. She highlighted that several educational institutions, including Punjab University and IIT Delhi, received show-cause notices from the central government in August 2024 for not paying GST on research grants received from 2017 to 2024.

“No country in the world imposes a tax on research grants. The central government has already reduced the amount of research funding, and now they want to impose GST on research grants raised independently by educational institutions,” Atishi said, adding that the Delhi government would demand GST exemptions on research grants at the meeting.

The 54th meeting of the Goods and Services Tax (GST) Council will take place on September 9. The Council, chaired by the Union Finance Minister and comprising representatives from all states and union territories, is responsible for making decisions on various aspects of GST, including tax rates and exemptions.

The last GST Council meeting, held on June 22, 2024, focused on addressing tax-related issues and simplifying compliance procedures. Since its implementation on July 1, 2017, the GST regime has streamlined the taxation system, reducing complexities and inefficiencies that existed in the previous indirect tax system. A Finance Ministry study noted that consumers have saved at least 4% of their household monthly expenses under GST, particularly on essential items such as cereals, edible oils, and snacks.

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