CosmicTaco

GST Notice Shocks CCAvenue and BillDesk Over Sub-INR 2,000 Payments

CosmicTaco · 2024-09-09T10:31:42.827897+05:30

- Tax authorities have issued GST notices to CCAvenue and BillDesk for low-value digital transactions. - The notices demand GST on fees charged to merchants for transactions below INR 2,000 since FY18. - The GST Council may discuss an 18% GST levy on such transactions next week. - Payment aggregators like Pine Labs, Razorpay, and PayU could face financial burdens due to this move. - The fintech sector might pass on these costs to merchants or end-users, affecting the ecosystem. Source: [Inc42](https://inc42.com/buzz/ccavenue-billdesk-get-gst-notices-for-digital-transactions-below-inr-2000/)

Tax authorities have issued GST notices to CCAvenue and BillDesk for low-value digital transactions.
The notices demand GST on fees charged to merchants for transactions below INR 2,000 since FY18.
The GST Council may discuss an 18% GST levy on such transactions next week.
Payment aggregators like Pine Labs, Razorpay, and PayU could face financial burdens due to this move.
The fintech sector might pass on these costs to merchants or end-users, affecting the ecosystem.

Source: Inc42