Government Planning 2% GST Relief on E-Payments
You may shortly require to shell out less dime if you shell out digitally. The government is seeking at providing a 2% inducement over the appropriate tax rate of GST in case of digital transactions where the bill is almost Rs 2,000, in a decision targeted at putting off payments via cash.
As per sources, the scheme might give the advantage in the shape of a cash-back or discount. It is being talked among RBI, the finance ministry, ministry of electronics and IT, as well as cabinet secretariat. “The thought is to incentivize all types of digital transactions, particularly smaller payments, in line with the plan of the government of turning India a cashless country,” a source claimed to the media in an interview.
The IT ministry is guiding the efforts of the government on digital transactions and has been taking stock of proposals to additionally popularize electronic transactions. A latest meeting analyzed digital transactions payment last November after demonetization. It was attend by Ravi Shankar Prasad, the IT minister, and senior executives from other parts of the government, comprising the cabinet secretary and finance ministry’s office.
The requirement to driving digital transactions has been lifted by Narendra Modi, the Prime Minister, himself marketing different divisions of the government to facilitate their better acceptance and go on overdrive. Speaking to the nation on the occasion of the 71st Independence Day, Modi had requested users, particularly the teens, to utilize less cash. “This is the era of information technology. The largest population of youth in the world is in India. So, we must go further in the way of digital payments,” Modi had claimed.
The source claimed that the help is disputable for smaller payments since these are large in amount and are almost favored via the cash mode. “Payments of almost Rs 2,000 are very huge in volumes and if an inducement can be attached here, it will offer a momentum to digital transactions while also making possible the entrance of more persons within the official economy. This will help assist hook up leakages while playing a believable part in responding to the development growth of black money.”