MAM
Surcharge removed for card and online payments for government services
MUMBAI: In a major development, no surcharge for card and online payments has been removed for government services.
A government notification to this effect follows a recent cabinet note in which towards the government has suggested removal of the surcharge as its commitment towards less cash economy, formulating a differentiated MDR framework, introduction of a formula linked acceptance infrastructure for different stakeholders, and incentivizing digital transactions.
The government has also suggested mandating payments beyond a prescribed threshold only in card/ digital mode, rationalization of telecom service charges for digital financial transactions; promotion of mobile banking; and creation of necessary assurance mechanisms for quick resolution of fraudulent transactions and review the payments ecosystem in the country.
The majority of these recommendations had been made by the Internet and Mobile Association of India (IAMAI) and Payments Council of India (PCI).
The Association has welcomed the positive and comprehensive steps taken by the government. It expressed the hope that a speedy implementation of all these recommendations will usher in more accountability, transparency and efficiency in the economy.
The industry body in its recommendations to the Finance Ministry – ‘Draft Proposal for Facilitating Electronic Transactions’ – had focused on government departments bearing MDR cost like other merchants, differentiated MDR framework for certain cash dominated sectors, having significant ticket sizes and generating considerable volumes of transactions, installing POS devices in proportion to cards issued and incentivizing the customers and merchants for adoption electronic payments among other things.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
