In order to promote transactions through Digital means, GST Council has approved to provide 20% Cashback on GST Payment. Now any person who is filing GST through Rupay Debit Card, BHIM App and USSD modes will be incentivized and can get cashback upto Rs. 100. This decision to give discount on cashless transactions was taken in the GST Council meeting held on 4 August 2018.
This 20% GST Cashback Scheme will promote cashless transactions through Debit Card, UPI in rural and urban areas. This incentivising of digital payments would help in maintaining a better database by the govt. and tracking footprints of various taxpayers.
Sh. Piyush Goyal, Minister of Finance, Central government has made this announcement after the meeting of GST Council to promote Cashless Transactions.
20% Cashback on GST Payment by Digital Means (Rupay, BHIM App)
The important features and highlights of 20% GST Cashback Scheme are as follows:-
- Govt. will now provide 20% discount on making GST Payment through Rupay Card, BHIM App & USSD transactions.
- This discount will be given in the form of cashback to incentivise customers.
- The maximum discount that a person can avail on making payment through Digital means is Rs. 100.
- GST Council focuses on making “Cashless India” and will provide 20% Cashback on GST on every transaction through Digital means.
- Govt. is going to launch this pilot project in only those states who are willing to join under this 20% GST Cashback Scheme.
- To successfully implement this scheme in states, GSTN (IT backbone of GST Network) and National Payments Corporation of India will soon launch a new software.
- In the near future, govt. can decide to implement this 20% GST Cashback Scheme in all states across the country.
- In meeting of GST Council on 4th August 2018, Delhi, Punjab, West Bengal and Kerala state govt. were against this scheme. So initially, only the pilot project will be launched.
GST Council has called the finance ministers of various states to give their opinions on promotion of Micro, Small and Medium Enterprises (MSME). The GST Council also set up a six-member panel of ministers under Minister of State for Finance Shiv Pratap Shukla to look into the issues of MSME Sector.
The GST Council on 4th Aug 2018 approves GoM recommendations to incentivize digital payments through Rupay card and BHIM app by way of cashbacks. After implementation, customers making payments using Rupay card or BHIM UPI will get a cashback of 20 per cent of the total GST amount, subject to a maximum of Rs 100. The next meeting of GST Council will be held on 28th and 29th September 2018.