The Goods and Services Tax (GST) Council is set to deliberate on the proposal to incentivise digital transactions again, sources with knowledge of the matter said on Thursday.
The council will discuss 146 suggestions proposed by the centre and states to ease hurdles for Micro, Small and Medium Enterprises (MSMEs).
The proposal on digital transactions makes a come-back after it was first tabled in November last year, after which it was handed over to a group of ministers headed by Bihar deputy chief minister Sushil Modi to look into the nuances.
The group of Ministers had suggested that the proposal be put on hold at the 28th GST Council meet held on July 21.
Revenue Implications:
If 33 percent of all transactions which are made through these modes get applicable for such incentives, then the revenue hit would be of Rs 1,636 crore, while if 25 percent of transactions avail this then it would have an impact of Rs 1,239 crore. Similarly, if 20 percent transactions come under this then it would have a hit of Rs 991 crore.
The GST Council is expected to meet on August 4.
Highlights of the proposal:
The proposal is to pass on the benefits to consumers who make transactions through RuPay (Debit Card) and UPI-Unified Payment Interface, BHIM and USSD.
The GST concession shall be given by way of refund to the consumer in his account through an automated route.
The concession shall be 10 percent of the CGST, 10 percent of SGST paid
Maximum concession of Rs 100 can be availed per transaction; (Rs 50 CGST and Rs 50 SGST) per transaction.
Concession would, however, not be available to supplies made by registered persons paying tax under the Composition Scheme.First Published: Aug 2, 2018 9:28 PM IST
