People making payments via digital mode gets 0% GST concession

The GST Council earlier in May had discussed giving a concession of 2% in GST rate (where the tax rate is 3% or more) to consumers making payment through cheque or digital mode. The discount would be limited to Rs.100 per transaction.

The group of ministers (GoM) met again on this Sunday 08-July-2018, where they decided to wait for revenues to stabilize under GST and the new returns filing system in the current fiscal, before considering differential GST rates for people making payments via digital mode.

The ministerial panel under the GST Council suggested to put off the decision of incentivizing digital payments under Goods and Services Tax (GST) by one year. This is because the sudden fall in revenues will hurt the government.

Let returns and GST revenues stabilize, then we can think about incentivizing digital transaction,” Sushil Kumar Modi said.

 

 

Source: Indian Express

You May Also Like

Leave a Reply