18% GST on online payments: GST Council Delays Decision on Tax for Small Online Payments

The GST Council has postponed its decision on imposing an 18% GST on online payments below ₹2,000, opting instead to refer the proposal to the fitment committee for in-depth evaluation. For now, small online transactions processed through payment aggregators will remain unaffected by this potential tax, offering relief to consumers who regularly make low-value digital payments. The proposed tax could have significantly disrupted the ease of everyday online purchases.

GST Council

Helicopter Services GST Reduced for Pilgrims

In a positive development, the GST on helicopter services for pilgrims and tourists is set to be reduced from 18% to a more manageable 5%. This adjustment aims to make religious and leisure travel more affordable and accessible. The GST Council’s discussions also addressed GST-related matters concerning life and health insurance policies, with ongoing efforts to balance sector growth and fair taxation, although no final decisions have been made.

Fitment Committee to Review GST on R&D Activities

Additionally, the fitment committee will examine GST implications for research and development activities within educational institutions. The Directorate General of GST Intelligence (DGGI) has issued notices to seven universities, including IIT Delhi and Punjab University, regarding research grants totaling ₹220 crore, underscoring continued scrutiny in this sector.