Business– GST Council proposes cashback incentive to promote digital payments

August 4, 2018

New Delhi: The Goods and Services Tax (GST) Council in its meeting on Saturday decided to start a pilot project to give cashbacks to consumers in order to incentivise digital payments in the country.

The pilot project, which proposes 20 per cent cashback on GST component of transactions, will be rolled out by states who voluntarily come forward and based on their experience, the Council may take a call to implement it across the country.

“Under the project, consumers will get a 20 per cent cashback subject to a cap of Rs 100 on all UPI and USSD transactions as well as transactions made using RuPay card and BHIM app,” Finance Minister Piyush Goyal told reporters here after the GST Council meeting.

Although the decision on the pilot project has been taken, it will take some time for implementation as software for the purpose will have to be developed and the states will have to decide on it before the benefit reaches the people.

“We have decided a broad framework of the pilot project which is aimed at promoting digital transactions. We believe that this will help in increasing compliance and give a boost to the formal economy,” Goyal said.

The GST Council also decided to form a Group of Ministers (GoM) headed by Union Minister of State for Finance Shiv Pratap Shukla to deliberate on issues facing micro, small and medium enterprises (MSMEs). The GoM will submit its recommendations in the next meeting of the Council.

The GoM on MSMEs will comprise Delhi Deputy Chief Minister Manish Sisodia, Bihar Deputy Chief Minister Sushil Kumar Modi, Assam Finance Minister Himanta Biswa Sarma, Kerala Finance Minister Thomas Isaac and Punjab Finance Minister Manpreet Badal.

Goyal, who presided the meeting to primarily discuss difficulties faced by MSMEs across the country, said the GoM will take the discussion further and interact with the the stakeholders before submitting its recommendations.

The Council also decided to refer all law and procedure-related issues to the Law Committee and issues related to GST rates to the Fitment Committee. Both committees would also file their recommendations before the next GST Council meeting.

Delhi’s Finance Minister Sisodia said the MSME sector was facing several issues since the rollout of the GST last year in July. The government should not ignore small businesses — which create employment — while making rules for the big businesses that pay more taxes, he added.
(IANS)

Shia leaders demand death for Hafiz Saeed, seek justice for 26/11 victims

Lucknow: The All India Shia Husaini Fund members have demanded justice for the 26/11 Mumbai attack victims by hanging its mastermind, Hafiz Saeed. Shia religious leaders and intellectuals from different...

Hundreds of jail police personnel go on mass CL in Gujarat

Ahmedabad: Hundreds of police personnel serving at various jails in Gujarat on Wednesday went on a mass casual leave demanding a pay hike at par with other police personnel and State...

Centre bans PFI, all its affiliates for 5 years. Here are key reasons

After two rounds of nationwide raids and arrests of over 240 members, the Centre on Wednesday banned the contentious Popular Front of India (PFI) and all its affiliates, excluding the...

Home Ministry all set to ban PFI after studying possible legal challenges

New Delhi: Days after the NIA and the ED raided several locations linked to the Popular Front of India (PFI) across the country, the Union Home Ministry is planning to...

ISI & Khalistani connections of Goldy Brar, Bishnoi

New Delhi, Sep 12 (IANS) The NIA sources have said that Goldy Brar and Lawrence Bishnoi gangs have contacts with Canada-based Khalistani elements and Pakistan-based ISI agents, and these gangs were...

IT sleuths seized our phones, cloned data, claim Oxfam, IPSMF

Days after the Income Tax Department carried out “surveys action” at their premises, Oxfam India and the Independent and Public-Spirited Media Foundation (IPSMF) alleged that the I-T personnel confiscated phones...

IS claims 1st Indian suicide bomber was Keralite Christian converted to Islam; agencies begin probe

Thiruvananthapuram: The Central intelligence agencies have commenced a probe after an article in the IS mouthpiece 'Voice of Koharasan' mentioned that 'the first Indian suicide bomber for them was a Keralite...

Hijab row not a controversy, but conspiracy against India: BJP

New Delhi: Referring to a plea in the Karnataka High Court to defer hearing on the 'hijab' row till the Assembly polls were over, the BJP has raised questions over the...

Congress to support BJP-backed Meghalaya govt

Shillong: In a significant political development, all five Congress MLAs in Meghalaya on Tuesday told Chief Minister Conrad Sangma that they wish to join the National People's Party (NPP)-led Meghalaya Democratic...

From reality to fiction, a tale of two opposites

New Delhi: Perhaps one becomes a different person after retirement? Released from the pressures and restrictions of a professional career you can give free rein to talents that remained dormant...

Ruins of ancient Sun temple in UP gets govt’s attention

Pratapgarh (Uttar Pradesh) Plans are afoot to revive a 8th century Sun temple, located in a Uttar Pradesh village in Pratapgarh district. A joint team of the state tourism department...

BHU scientist warns against ‘unscientific’ tree plantation

Varanasi: Even as Uttar Pradesh undertakes a massive tree plantation drive, a retired scientist and river engineer from the Banaras Hindu university (BHU) has warned against "unscientific plantation of trees...

Read Previous

Nation– Indian, Thai Armies joint counter-terror exercise from Aug 6

Read Next

England beat India in first Test to lead series

Leave a Reply

Your email address will not be published.

WP2Social Auto Publish Powered By : XYZScripts.com