GST Council discusses 2% concession to customers on digital payment

Business

NThe GST Council on Friday discussed to giving up to Rs 100 incentive for digital payments for purchases by consumers

The GST Council on Friday discussed to giving up to Rs 100 incentive for digital payments for purchases by consumers, approved a new model for single monthly return and decided to turn the GSTN into a government-owned entity.

Most member states on the GST Council panel were agreeable to the proposal of giving a concession of 2% in GST rate (where the tax rate is 3% or more) on business-to-consumer (B2C) supplies, for which payment is made through cheque or digital mode, subject to a ceiling of Rs 100 per transaction, so as to incentivise promotion of digital payments.

But since some states wanted a small negative list, the issue will be referred to a five-member group of state finance ministers, Jaitley said.

A separate group of ministers would go into the issue of levy of cess on sugar and reduction of GST on ethanol.

While the cost of sugar production is over Rs 35 per kg, the market price is around Rs 26-28 a kg, he said, adding cane growers are in deep distress and a proposal to levy a cess was made to help them.

Now since this (suggestion has been made) after the GST has been implemented,” he said, referring to GST roll-out from July 1 last year where a cess on top of GST rate was imposed only on luxury and demerit goods like cigarettes and high-end cars to make up a kitty to compensate states for their losses due to implementation of the new tax regime.

Collections from a similar cess on sugar could be used for helping farmers, it was proposed.

 

 

[“source=hindustantimes”]

Written by Loknath Das