New Delhi: In an attempt to further promote cashless transactions in rural semi-urban areas, the Goods and Services Tax (GST) Council on Saturday, decided to offer cashbacks of 20% to consumers on a trial basis for every digital payment made via Rupay cards, BHIM application and UPI system.
Volunteer states would roll out incentives on pilot basis for digital payments, and the GSTN, the IT backbone of the GST network, and the National Payments Corporation of India will develop a system soon for the same, interim finance minister Piyush Goyal told reporters after the GST Council meeting here.
Once implemented, customers making payments through Rupay card and BHIM UPI, would get a cashback of 20% of the total GST amount, subject to a maximum limit of Rs100, Goyal said, while terming the move as a step towards formalisation of the economy.
Relief ahead for MSMEs?
- The GST Council on Saturday decided to form a group of ministers headed by minister of state for finance Shiv Pratap Shukla to address the various issues faced by small businesses.
- ‘The issues related to law will be taken up by the law committee and those related to rates will go to the fitment committee,’ interim finance minister Piyush Goyal said.
- ‘Both these committees will deliberate on the issues and submit recommendations to the group of ministers headed by Shiv Pratap Shukla,’ he added.
How much cashback can one get?
Payment (Rs) GST @ 12% Cashback (20% of tax)
1,000 120 24
2,000 240 48
3,000 360 72
4,000 480 96
NOTE: GST has slabs of 5%, 12%, 18% and 28%. The tax and cashback amount for the same are likely to differ.
(With inputs from agencies)