THE GOVERNMENT WILL MAKE A BIG ANNOUNCEMENT FOR PEOPLE WHO HAVE DIGITAL PAYMENTS
If you pay through a debit card, a credit card or a payment app, it's good news for you. The government is planning to give 2% discount to the GST to customers who make digital payments. The proposal is likely to be discussed at the next meeting of the GST conference in January. According to the proposal, these discounts will only be available on business to consumer transactions, on products and services, on which the GST is up to 3% or more. One percent per cent discount on central GST and one percent of state GST.
A government official said that the idea behind this is to promote digital transactions. If this proposal is approved, it will be encouraged to increase the shape of formal economies as customers will demand digital payment options from shopkeepers. He said that theft will also be reduced and compliance rates will also improve.
If the proposal is applied then the effective rate of GST for people who pay digitally will be reduced from 18% to 16%. However, the limit of discounts will be up to 100 rupees per transaction. This means that on the goods involved in the 18% series, the counterfeit transaction will be available at a discount of Rs 100 per purchase up to Rs 5,000.
A government official said that the idea behind this is to promote digital transactions. If this proposal is approved, it will be encouraged to increase the shape of formal economies as customers will demand digital payment options from shopkeepers. He said that theft will also be reduced and compliance rates will also improve.
If the proposal is applied then the effective rate of GST for people who pay digitally will be reduced from 18% to 16%. However, the limit of discounts will be up to 100 rupees per transaction. This means that on the goods involved in the 18% series, the counterfeit transaction will be available at a discount of Rs 100 per purchase up to Rs 5,000.
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