GST alert: Soon, cashbacks to businesses, price benefit to customers for digital transactions; details here
Monday, April 30, 2018 IST
The government is working on a proposal to incentivise digital transactions by providing cashbacks to businesses and price benefits to consumers, a source said.
The government is working on a proposal to incentivise digital transactions by providing cashbacks to businesses and price benefits to consumers, a source said. As per the proposal being worked out by the Revenue Department, consumers paying through the digital mode would be offered a discount over the maximum retail price (MRP). The discount would be capped at Rs 100. Businesses, on the other hand, could get a cashback based on the quantum of turnover through the digital mode.
The proposals to encourage digital transactions are likely to be placed before the GST Council, chaired by Finance Minister Arun Jaitley and comprising state ministers, on May 4. According to the source, the issue of providing incentive for digital transaction was discussed at a meeting held in the Prime Minister’s Office.
During the meeting, three possible modes of incentivising businesses to go in for digital transactions were discussed. Apart from cashbacks, a proposal to allow businesses to obtain tax credit on the basis of turnover obtained through digital mode was also discussed. This would have worked like the input tax credit mechanism wherein businesses can credit for taxes paid on raw materials. Besides, the option of allowing businesses to offset their GST liability up to a threshold for using digital transaction was also deliberated.
The source said the Revenue Department has zeroed in on the option of cashback to businesses based on a threshold of digital transaction. This would be easier to implement and cannot be misused by unscrupulous elements. As a matter of precaution, the department will ascertain the veracity of the digital transactions reported by the businesses and then credit the cashback to their bank account.
During the PMO meeting, it was also discussed if any incentives could be given for digital transaction from the direct taxes side. The direct tax department, the source said, has outlined the steps it had taken to discourage cash dealings. Besides, for small businesses opting for presumptive taxation scheme, it had reduced the rate for calculation of deemed profit from 8 per cent to 6 per cent in respect of the amount of total turnover or gross receipts received through banking channel/digital means.
The source said since the incentives would have been on the basis of the turnover of the businesses, it was felt that the indirect tax department would be better placed to incentivise the businesses and hence the GST Council would have to give a final go ahead.
Related Topics
Trending News & Articles
While the Uttarakhand High Court has asked to block 857 websites, the Ministry of Electronics and IT (Meity) found 30 portals without any pornographic content.
...
Recently posted . 64K views . 1 min read
The four boys as well as five school officials, including the director and principal, were arrested after the incident. The minors were presented before the Juvenil...
Recently posted . 10K views . 1 min read
Rahul was having an Italian passport and was carrying suitcase full of dollars. Some say it was about was it $2 million.
Rahul and his girl friend was th...
Recently posted . 9K views . 7 min read
True – Tr...
Recently posted . 8K views . 83 min read
More in National
New Delhi/Mysuru: The controversial Railway Line between Thalassery in Kerala to Mysuru via South Kodagu has been scrapped. An official announcemen...
Recently posted. 880 views . 1 min read
There have been multiple cases of couples getting caught on Delhi Metro sharing intimate moments, the most worrying part of this is a major privacy breach.
Recently posted. 1K views . 1 min read
The first and most important thing to note is that there are prescribed time limits under which the TDR (Ticket Deposit Receipt) has to be filed to claim a refund.<...
Recently posted. 1K views . 1 min read
Recently posted . 1K views
Recently posted . 1K views
Recently posted . 3K views
Recently posted . 1K views
Recently posted . 4K views . 57 min read
Recently posted . 3K views . 88 min read
New Delhi: Days, after 25 Central Reserve Police Force troopers were slaughtered by Maoists in Chhattisgarh's Sukma locale, a video of a CRPF jawan, is smashing...
Recently posted. 900 views . 10 min read
The CBSE said on Wednesday the Class 10 mathematics and Class 12 Economics board exam will be held again over reports of paper leak.
Recently posted. 854 views . 0 min read