GST discounts face a roadblock as States fail to get collective consensus

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GSTCentre’s proposal to offer discounts on digital payments pertaining to Goods and Services Tax (GST) face a major roadblock as States fail to get common consensus.

Reportedly, there are diverse views on Centre’s provision of discounts on digital payments as some States believe it to a discrimination against those who don’t use digital mode of payments.

For promoting the usage of digital payments, the centre proposed to offer a concession of 2 per cent on GST rate pertaining to Business to Consumer (B2C) supplies if the payment is done using digital mode subject to a limit of Rs 100 per transaction.

The discount to be offered under the scheme may be provided in the form of a discount or cashback.

The motive behind the scheme is to attract more customers to use digital payments. The scheme, now under consideration with the Ministry of Finance, the Reserve Bank of India, the cabinet secretariat and the Ministry of Electronics and IT, is facing a lot of new challenges in terms of its implementation.

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