The GST Council, chaired by Finance Minister Piyush Goyal, on Saturday, approved the proposal for providing incentives for digital transactions through Rupay card and BHIM app on a pilot basis. Once implemented, customers making payments using Rupay card or BHIM UPI will get a cashback of 20 percent of the total GST amount, subject to a maximum of Rs 100.
‘To promote digital transaction, increase compliance and collection in taxes, RuPay Debit and UPI-based transaction will get cashback of 20 percent for the GST paid, capped at Rs 100. The GST Council has decided to create software for this and any state willing can implement on a pilot basis,’ Goyal said
The council also announced that a six-member committee will be set up to look into the issues of Micro, Small and Medium Enterprises (MSMEs). The committee will be headed by Minister of State (MoS) for Finance, Shiv Pratap Shukla.
‘Today we held a historic meeting of the GST Council. It was a meaningful discussion. One of the key issues that were resolved was that in last 13 days in all GST Council meetings the sympathy given to the MSME sector was appreciated by all. We have taken measures to ease the issues faced by MSMEs,’ Goyal said.
Any decision related to taxation will be taken by the Fitment Committee and law committee of the Centre will take care of law and procedures. They will give their recommendations to the GoM, Goyal added.
The committee will also consist of Deputy Chief Minister of Delhi Manish Sisodia, Deputy Chief Minister of Bihar Sushil Kumar Modi, Assam finance minister Himanta Biswa Sarma, Kerala finance minister Thomas Isaac and Punjab finance minister Manpreet Singh Badal.
The next meeting of the GST Council will be held on September 28-29 in Goa.