Up to Rs 100 GST discount on digital payments plan
The five-member GST committee led by Sushil Modi has put the proposal to offer discount up to Rs 100 on applicable GST for the cheque and digital payments in all B2C transactions on hold until the next meeting as some members raised concerns on using the GST as a tool to incentivise digital transactions, CNBC-TV18 reported quoting sources. Sushil Modi said that one more meeting is required to calculate the loss and gains of incentivising the digital transactions.
The revenue loss could be up to Rs 25,000 crore, the news channel reported. The GST Council had proposed incentivising digital transaction last Friday. Keeping in view the need to move towards a less cash economy, the Council has discussed in detail the proposal of a concession of 2% in GST rate on B2C supplies, for which payment is made through cheque or digital mode up to Rs 100 per transaction. The proposal was for the cases where the GST rate of 3% or more is applicable.
“The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, before the next Council meeting, keeping in mind the views expressed in GST Council,” the Finance Ministry said in a statement last week.
While most of the states in the GST Council were agreeable to the proposal, West Bengal had voiced concerns saying that the poor people will suffer because they still find cash as a viable mode for transaction, PTI reported. The committee has been tasked to give its recommendations within 15 days.
The five-member Group of Members (GoM) committee include Gujarat Deputy Chief Minister Nitinbhai Patel, West Bengal Finance Minister Amit Mitra, Haryana Excise & Taxation Minister Capt Abhimanyu and Punjab Finance Minister Manpreet Singh Badal.
Source by:- financialexpressShare:
Latest Fixed Deposit interest rates in SBI, HDFC, Post Office, ICICI, PNB comparedLatest Fixed Deposit interest rates in SBI, HDFC, Post Office, ICICI, PNB compared
Fixed Deposit interest rates latest update: The State Bank of India has hiked interest rates onRead More
Five income tax notices you can get and what they meanFive income tax notices you can get and what they mean
It is that time of the year when you may have received a notice fromRead More