AAP Opposes GST on Small Transactions and Research Grants

Delhi Finance Minister Atishi declared the AAP government's opposition to the Centre's alleged plan to levy GST on transactions under Rs 2,000 and research grants. This move could heavily impact startups and educational institutions. The decision is set to be discussed at the GST Council meeting.

In a press briefing on Sunday, Delhi Finance Minister Atishi announced the Aam Aadmi Party (AAP) government's firm stance against the Centre's proposal to impose GST on payment gateway transactions below Rs 2,000 and research grants.

Scheduled for deliberation at the GST Council meeting on Monday, this contentious plan poses significant concerns for many small businesses and startups, according to Atishi, who emphasized its potential to stifle the burgeoning entrepreneurial ecosystem.

Atishi criticized the central government's contradictory approach, pointing out that while it claims to promote a cashless economy, the new tax proposal would effectively burden small transactions that were previously exempt.

(With inputs from agencies.)