The blog explores the recent proposal put up by the GST Council to charge payment aggregators 18% GST for enabling small-value digital transactions up to ₹2,000 that are done using credit and debit cards. It investigates how this action can affect different parties, such as customers, merchants, and payment aggregators. The article also addresses the possibility of a shift in payment preferences in favor of options like UPI, which is not currently subject to these tax ramifications. It also emphasizes the background of the 2016 service tax exemption on small-value digital transactions, which was implemented to encourage the use of digital payments in India.

You can access this feature through any UPI using Kotak Mahindra Bank. It's a significant move towards making GST payments more digital and straightforward.

The updated UPI transaction limit regulations now allow individuals to make payments via UPI up to Rs.5 lakh per day, compared to the previous cap of Rs.1 lakh.