NO GST SOPS ON DIGITAL PAY FOR NOW
New Delhi, July 8: The Sushil Modi led ministerial panel will recommend to the GST Council to defer by a year the proposal to incentivise digital payments under GST, citing revenue implications of doling out concessional tax rate.
The panel, in its meeting today, has decided to wait for stabilisation of revenues under Goods and Services Tax and the new return filing systems in the current fiscal before considering differential GST rates for people making payments using the digital mode.
Besides, another ministerial panel under Modi, on Reverse Charge Mechanism has decided to recommend powers to the GST Council to notify the registered persons who would come under RCM purview. —
New Delhi, July 8: The Sushil Modi-led ministerial panel will recommend to the GST Council to defer by a year the proposal to incentivise digital payments under GST, citing revenue implications of doling out concessional tax rate.
The meetings of the two Group of Ministers were held here on Sunday.
The recommendations of these ministerial panels will be placed before the GST Council in its next meeting on July 21.
Mr Modi said the GoM on digital transaction has decided that this is not an opportune moment to incentivise digital payments as it will have revenue implication.
“Let returns and GST revenues stabilise, then we can think about incentivising digital transaction... The GoM will be recommending to the Council that it may think about the proposal of incentivising digital transaction again after a year. The GoM is recommending deferring the proposal for a year,” the Bihar deputy chief minister said.
To incentivise digital transaction, the GST Council in its last meeting in May had discussed giving a concession of 2 per cent in GST rate (where the tax rate is 3 per cent or more) to consumers making payment through cheque or digital mode. The discount would be capped at `100 per transaction.
The five member GoM on incentivising digital transaction include Gujarat deputy chief minister Nitinbhai Patel, West Bengal finance minister Amit Mitra, Haryana excise & taxation minister Capt Abhimanyu and Punjab finance minister Manpreet Singh Badal.
— PTI