Analysis of 55th GST Council’s decision to clarify that RBI regulated Payment Aggregators are eligible for the exemption, not payment gateway (PG)

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..... Analysis of 55th GST Council’s decision to clarify that RBI regulated Payment Aggregators are eligible for the exemption, not payment gateway (PG)
By: - Vivek Jalan
Goods and Services Tax - GST
Dated:- 3-1-2025

To clarify that RBI regulated Payment Aggregators are eligible for the exemption under entry at Sl. No. 34 of notification No. 12/2017-CT(R) dated 28.06.2017 since they fall .....

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..... within the ambit of 'acquiring bank' as defined in the said entry. To also clarify that this exemption does not cover payment gateway (PG) and other fintech services which do not involve settlement of funds. Our Comments: A payment aggregator is a third-party payment processor like Razorpay that facilitates online transactions between businesses and customers. It enables businesses to accep .....

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..... t various payment methods, such as credit cards, debit cards, UPI, net banking, and digital wallets Status of Applications received from Online Payment Aggregators (PAs) under Payment and Settlement Systems Act, 2007 - As on December 16, 2024 Table A: Existing PAs who can operate as Online Payment Aggregators Sr No. Name of the entity 1 Dreamplug Paytech Solutions Private Limited 2 Easebuz .....

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..... z Private Limited 3 Futuretek Commerce Private Limited 4 Hiveloop Internet Private Limited 5 Mpurse Services Private Limited 6 Nomisma Mobile Solutions Private Limited 7 NTT DATA Payment Services India Limited 8 Paymate India Private Limited 9 PayU Payments Private Limited 10 Phi Commerce Private Limited 11 PhonePe Private Limited 12 Pine Labs Private Limited 13 Tyche Payment .....

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..... Solutions Private Limited 14 Unimoni Enterprise Solutions Private Limited * 15 Vay Network Services Private Limited 16 Xsilica Software Solutions Private Limited 17 Zaak Epayment Services Private Limited 18 Freecharge Payment Technologies Private Limited * 19 Global Payments Asia-Pacific (India) Private Limited * 20 LivQuik Technology (India) Private Limited 21 PayTM Payments Serv .....

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..... ices Limited * 22 Tapits Technologies Private Limited * A payment gateway is a digital service that allows businesses to accept and process payments from customers. It acts as a secure bridge between the merchant and the bank, enabling businesses to accept payments through websites, mobile apps, or in physical stores. Some PGs are - 1. PayU 2. CCAvenue 3. Instamojo 4. PhonePe 5. OPEN .....

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..... 6. MobiKwik 7. Cashfree 8. BillDesk 9. Citrus Pay RBI regulated Payment Aggregators and not Payment Gateways are eligible for the exemption under entry at Sl. No. 34 of notification No. 12/2017-CT(R) dated 28.06.2017 since they fall within the ambit of 'acquiring bank' as defined in the said entry.
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