2 percent discount on GST is likely
Posted on: 28/Aug/2017 5:28:45 PM
The government aims at creating a cashless economy or less-cash economy by promoting digital transactions. For this, it is likely that a cash back offer or about 2 percent discount on bills for up to Rs 2000 may be imposed. This 2 percent incentive shall be applied on the applicable GST tax rate.
Reports state that there were discussions among the Finance Ministry, the RBI, cabinet secretariat, and ministry of electronics and IT in this regard.
The government intends to promote digital payment methods for day to day smaller transactions. It is believed that the Ministry of Information and Technology is taking necessary measures and planning methods for encouraging digital transactions.
It is in fact said that the IT minister Ravi Shankar Prasad and few other senior officials took part in a discussion about progressing with digital transactions since the time of demonetization last year. About 2 percent discount is likely to be offered for transactions that exceed Rs 2000 as those are of high volume.
More than Rs 2000 will be called high volume transactions and when an incentive can be given in this case, digital payments can be facilitated and more people will show interest with the formal economy.
