GST Council meeting today: Delhi govt to oppose Goods and Services Tax on payment gateway; ‘hypocrisy’ says Atishi

Delhi government is set to oppose the proposed Goods and Services Tax (GST), Delhi Finance Minister Atishi announced on Sunday, ahead of the GST Council meeting. Atishi declared that during the forthcoming 54th GST Council meeting, the Arvind Kejriwal-led Delhi government will vehemently oppose the proposed GST on payment gateway transactions under ₹2,000, reported PTI.

This development comes in the wake of the proposal put forth by the BJP-led NDA government at the centre regarding imposition of 18% GST on online payments made through payment gateways.

Underscoring that these transactions were exempt from GST till date, she alleged that this measure would negatively impact lakhs of startups and small businesses nationwide. Consequently, imposing excessive financial strain on the country's entrepreneurial community.

She further emphasised that small businesses contribute significantly to the economy and account for 30 percent of India’s GDP and 62 percent of employment. Expressing concern over central government's recent move, the Delhi Finance Minister said. “Imposing GST on small transactions will harm countless small businesses and start-ups,” reported PTI.

The GST Council meeting today will most likely see deliberations on a host of concerning issues. These range from taxation of insurance premiums, the Group of Ministers (GoMs) suggestions on rate rationalisation to status report on online gaming.

Charging at the central government for its ‘hypocrisy,’ Atishi said, "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," PTI reported. She pointed out that the GST proposal contradicts central governments claims about promoting digital payments and a cashless economy.

Atishi alleged the BJP of cutting down on research budget. “In the last 10 years, under anti-education BJP, the research budget has been reduced from ₹70,000 crore to ₹35,000 crore,” PTI quoted Atishi as saying.

Criticising the BJP, the AAP leader said no country in the world imposes GST on research grants given to educational institutions because they do not see research as a business instead as an investment in progress of the country.

(With PTI inputs)