The issue of goods and services tax (GST) on the interplay of transactions between a bank or Unified Payments Interface (UPI) gateway and an e-commerce portal/shop is increasingly coming up for examination in the course of assessments.Customers who use a particular credit card or UPI gateway while shopping get an outright discount or a cashback offer. A full or part reimbursement of this incentive by the bank to the e-portal or even a joint arrangement between the two parties (which could be considered a barter of services) is likely to attract GST, say tax experts.
Source: a2ztaxcorp.com
