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

• 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