Clearing a long-awaited road-block on GST discounts, a Group of State Finance Ministers, headed by Bihar Deputy Chief Minister Sushil Modi, finally approved the cash-backs on payments made through RuPay cards, BHIM App, UPI. This proposal will now be taken to the GST Council today for the final go ahead.
As much as 20 per cent of total GST paid up to Rs 100 per transaction will be provided as cash back on digital payments, on made payments made via RuPay cards, BHIM App and UPI.
This move will offer great benefits to RuPay cardholders as well as BHIM App users, especially from semi-urban and rural areas, said Sushil Modi.
In addition to this, he said that the total revenue outgo in a year for the exchequer will not exceed Rs 1,000 crore, despite the discount. He also said that the share of spending would be equally shared by Centre and States.
It is expected that approval of the move will help in boosting the transactions made via RuPay cards, BHIM App, UPI. It has reported that the volume of transactions made via Unified Payments Interface (UPI) has dropped in July as compared to the previous month.