On Saturday, the GST council has cleared off the proposal to offer cash back to the consumers on the trial basis for the digital payments in order to promote cashless transactions. This will include all the payment that is made through UPI System, BHIM application and Rupay Cards.
The Finance Minister Piyush Goyal elaborated the details saying that the volunteer states would roll out the incentives on the basis of the pilot on the payment did digitally, and the GSTN. The IT will be the backbone of all the GST network and the National payment corporation of India will develop a system soon for the same.
Once implemented, the customers have made the payments through BHIM UPI and Rupay Card would get the cashback of total of 20 per cent on the GST amount. The subject is to the maximum limit of the 100 rupees as per Goyal after the meeting with GST council. He further said that the move is a step to formulate the economy of the country.
Goyal said, “We have decided to undertake a pilot project. A broad framework has been worked out so that users of Rupay debit card, BHIM, Aadhaar, UPI, USSD transactions can be given the incentives because these are mostly used by poor people,”
Many leaders that are under the Bihar Deputy Chief Minister Sushil Modi, has worked up the cashback mechanism and assessed that the revenue loss on any account would be 1000 crore rupees annually.
Goyal added to this, “The Council has decided to prepare the software and backend for this (cash back incentive) and whichever state volunteers for it, the pilot can be run in that state itself and impact on revenue can be assessed,”
The GST council has also set up a six-member panel of the ministers that will work under the State for Finance Shiv Pratap Shukla to look out in the issues of the MSME sectors. Other members of the minister panel are the Delhi Deputy Chief Minister Manish Sisodia, Assam Finance Minister Himanata Biswa Sarma, Bihar Deputy Minister Sushil Modi, Punjab Finance Minister Manpreet Singh Badal and Kerala Finance Minister Thomas Issac.
Sisodia added to the details, “While on one side there are big businesses who give more taxes, but then on the other side, there are small businesses who are large in number, who gives employment. Both have to be given importance. The rule should not be such that we brainstorm for those who give more tax to the government, and small business just continue to pay taxes,”