Digital Payments

Govt plans GST Relaxation for digital payments

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

Share It
Tags: , , , , , , , , , , , ,
Previous Post
GSTR-4 Return Form

Easy Step by Step Guide for GSTR-4 Return Form Online Filing Procedure

Next Post

Guidelines for Filling GSTR-3B Form


  1. Awesome content many thanks! We think your articles or blog posts are excellent and hope
    there’ll be more soon.

  2. Very well written information. It will be useful to anyone who uses it, including me.
    Keep doing what you’re doing – for sure i’ll check out more

  3. Your warmly welcome.

  4. It’s actually a nice and helpful piece of information. I am happy that you simply shared this helpful info with us. Please stay us up to date like this. Thank you for sharing.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.