New Delhi:- The Center has Proposed a Two percentage point discount in the GST for Consumers who make the digital Payments. The proposal is likely to be picked up at the next council meeting in January 2018 if approved then it will boost the government to the attendant in a cashless economy.
The incentive will be available to B2C transactions for GST that face a GST rate of 3 % or more. Whereas the incentive will include a 1% concession on the CGST and another 1% on the SGST.
Key Points of promoting Digital payments
The incentive could be 2% on bills till Rs 2,000.
The main idea is focused on minimizing cash payments.
The need to power up digital payments has been promoted by PM Modi himself.
“The idea is to encourage digital transactions, and what better way than to incentivize them. The move will help increase the size of the formal economy as consumers will demand digital payment options from retailers,” an official said. It would reduce tax evasion as well, he added. The proposal was on the agenda of the previous GST Council meeting in Guwahati on November 10 but could not be pick Up
The effective GST rate for items, the 18% slab will come down to 16% for those who are paying through digital mode. However, the concession will be limited to ~100 per transaction. This implies that goods and services bought up to ~5,000 per transaction will enjoy the full 2 percentage point concession of ~100. “Customers will seek digital transactions from merchants, thereby increasing the level of competition in the market,” said another official.
Written By:- Kiram M. Content Writer