New Delhi: Delhi Finance Minister Atishi on Sunday said the AAP government will oppose the Centre's alleged plan to impose GST on payment gateway transactions below Rs 2,000 and on research grants.
The GST Council on Monday is expected to deliberate on a host of issues, including taxation of insurance premiums, suggestions from the Group of Ministers (GoM) on tariff rationalization and a status report on online gaming.
The council is chaired by Union Finance Minister Nirmala Sitharaman and comprises state ministers.
Addressing a press conference, Atishi said the decision to impose GST (goods and services tax) on online transactions below Rs 2,000 would have serious consequences for numerous startups and small businesses across the country.
He stressed that the BJP-led central government's plan would put undue financial pressure on the country's business community.
The minister said the Aam Aadmi Party (AAP) dispensation is of the view that implementation of such a tax on smaller transactions will hamper the growth and development of the startup ecosystem and negatively impact the operations of small businesses.
Atishi said the central government has been continuously saying that it is promoting digital transactions and a cashless economy.
"However, their hypocrisy is evident as the central government will bring a proposal in tomorrow's GST Council meeting that online transactions below Rs 2,000, which were hitherto exempt from GST, will now be taxed "he stated.
"When we buy something online using debit cards, credit cards or net banking, if our transaction is less than Rs 2,000, it is not subject to GST. If the transaction exceeds Rs 2,000, it attracts 18 per cent GST on the entry fees," he explained.
This means that small online purchases, made using a debit or credit card, will also be subject to tax. Most of these payments are made through some payment gateway such as Razorpay, CCAvenue or BillDesk, he said.
Atishi said they would also oppose GST on research grants at the meeting.
"No country in the world imposes GST on research grants given to educational institutions because they do not see research as a business but as an investment in the progress of the country," he said.
"Every developed country in the world invests a large part of its GDP in research. But in the last 10 years, under the anti-education BJP government, the research budget has been reduced from Rs 70,000 crore to Rs 35,000 crore," he stated.
He claimed that six educational institutions, including IIT-Delhi and Punjab University, received GST notices worth Rs 220 crore.
"The government is reducing the research budget and imposing GST on educational institutions if they receive research grants from private entities. This is completely wrong and we will demand that research grants given to educational institutions be exempt from GST," he added.
The GST Council on Monday is expected to deliberate on a host of issues, including taxation of insurance premiums, suggestions from the Group of Ministers (GoM) on tariff rationalization and a status report on online gaming.
The council is chaired by Union Finance Minister Nirmala Sitharaman and comprises state ministers.
Addressing a press conference, Atishi said the decision to impose GST (goods and services tax) on online transactions below Rs 2,000 would have serious consequences for numerous startups and small businesses across the country.
He stressed that the BJP-led central government's plan would put undue financial pressure on the country's business community.
The minister said the Aam Aadmi Party (AAP) dispensation is of the view that implementation of such a tax on smaller transactions will hamper the growth and development of the startup ecosystem and negatively impact the operations of small businesses.
Atishi said the central government has been continuously saying that it is promoting digital transactions and a cashless economy.
"However, their hypocrisy is evident as the central government will bring a proposal in tomorrow's GST Council meeting that online transactions below Rs 2,000, which were hitherto exempt from GST, will now be taxed "he stated.
"When we buy something online using debit cards, credit cards or net banking, if our transaction is less than Rs 2,000, it is not subject to GST. If the transaction exceeds Rs 2,000, it attracts 18 per cent GST on the entry fees," he explained.
This means that small online purchases, made using a debit or credit card, will also be subject to tax. Most of these payments are made through some payment gateway such as Razorpay, CCAvenue or BillDesk, he said.
Atishi said they would also oppose GST on research grants at the meeting.
"No country in the world imposes GST on research grants given to educational institutions because they do not see research as a business but as an investment in the progress of the country," he said.
"Every developed country in the world invests a large part of its GDP in research. But in the last 10 years, under the anti-education BJP government, the research budget has been reduced from Rs 70,000 crore to Rs 35,000 crore," he stated.
He claimed that six educational institutions, including IIT-Delhi and Punjab University, received GST notices worth Rs 220 crore.
"The government is reducing the research budget and imposing GST on educational institutions if they receive research grants from private entities. This is completely wrong and we will demand that research grants given to educational institutions be exempt from GST," he added.
