GST Council Meet Over: Two percent Incentive for Digital Payments

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The GST Council, after its 27th Meeting, has decided to approve a proposal wherein a 2 per cent concession, subject to a ceiling of Rs 100 per transaction, may be offered to consumers in B2C transactions if they pay through digital modes.

While attending a press conference after the GST Council meeting, Finance Minister Arun Jaitley said that “the issue before the council was whether on digital payments through either the banking mode or the cheque mode or any form of digitized mode, a two percent incentive should be given to those who pay entirely through digitized mode. This would be subject to a  cap of Rs. 100 per voucher. And this would not apply to the composition dealers.”

The Government‘s move to provide concessional rate for digital payments under GST in B2C transactions is estimated to cost the exchequer around Rs 10,000-25,000 crore, depending on the share of such transactions in total digital transactions in a year.

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