GST Council in its 29th meeting on Saturday (4th July 2018) decided to start a pilot project to give 20 per cent cashback of the GST paid subject to cap of Rs 100 on all UPI and USSD transactions as well as transactions made using RuPay card and BHIM app. The move is aimed to promote digital transactions in the country.
“We have decided the broad framework of the pilot project which is aimed at promoting digital transactions. We believe that this will help in increasing compliance and give a boost to the formal economy,” Finance Minister Piyush Goyal said.
Although Government has already decided worked our broad framework but system for the same is not ready and same will be developed soon by National Payments Corporation of India
Once System is ready whichever state volunteers for it, the pilot can be run in that state itself and impact on revenue can be assessed.
The meeting was held specially to discuss concerns and issues faced by micro, small and medium enterprises (MSMEs).