The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan, today.
The council has recommended that no GST is payable on payment Aggregators who do less than Rs. 2k payment are eligible for GST exemption. However, GST exemption is not applicable on payment gateways and other fintech services.
The council clarified that RBI regulated Payment Aggregators are eligible for the exemption under entry at Sl. No. 34 of notification No. 12/2017-CT(R) dated 28.06.2017 since they fall within the ambit of ‘acquiring bank’ as defined in the said entry.
The council further stated that GST exemption does not cover payment gateway (PG) and other fintech services which do not involve settlement of funds.
