Interim Finance Minister Piyush Goyal on Saturday said that the Goods and Services Tax Council has decided to roll out incentives for digital transactions through RuPay card and BHIM app under the new tax regime on a pilot basis. The minister said those who avail of these incentives will get 20% cashback of maximum Rs 100 on the GST amount.
“Based on the pilot scheme, we can asses the revenue gain or loss,” Goyal said at the 29th GST Council meeting. “A broad framework has been worked out so that users of Rupay debit card, BHIM, Aadhaar, UPI, USSD transactions can be given the incentives because these are mostly used by poor people,” he said, according to the Hindustan Times. Goyal said the GST Council has decided to build the software and provide back-end support for the pilot scheme. States can volunteer to take up the scheme, he added.
The move is expected to cost the exchequer Rs 10 billion, which will be shared equally by the Centre and states, Business Standard reported.
West Bengal Finance Minister Amit Mitra disagreed with the pilot scheme while Kerala Finance Minister Thomas Issac said there was no consensus on the matter. Tamil Nadu, Haryana and Assam showed their willingness to run the scheme.
The GST Council also decided to set up a Group of Ministers under Minister of State for Finance Shiv Pratap Shukla to look into problems faced by the Micro, Small and Medium Enterprises sector. Other members of the group include Delhi Deputy Chief Minister Manish Sisodia, Bihar Deputy Chief Minister Sushil Modi, Assam Finance Minister Himanta Biswa Sarma, Finance Ministers of Kerala and Punjab Thomas Isaac and Manpreet Singh Badal.
“We have decided that from now onward the Law Committee will take decisions related to taxation law and the Fitment Committee will take decisions related to taxation rates,” Goyal said, according to ANI. These committees will give their recommendations to the Group of Ministers.
“While on one side there are big business who give more taxes, but then on the other side there are small businesses who are large in number, who gives employment,” said Manish Sisodia. “Both have to be given importance.”