The Government has exempted the tax payment of 2% of GST on bills if the bill is paid through digital payment. This tax exemption only applies to bills more than Rs 2000. This special incentive was introduced by GST Council to encourage the people towards the digital payments.
The sources were stating that the GST Council is trying to bring the cash back or special discount. The decision should be soon made by cabinet secretarial and finance ministry. This special incentive system to being implemented to promote cashless transactions. And this discount is exceptionally planned for small transactions. The IT Ministry is keeping efforts to make Digital India by making the cashless economy. The IT Ministry is also monitoring the e-payments system.
Recently, the meeting was held by the finance ministry in this regard. In this meeting, the discussions were done about the digital payment system after demonetization.
After Demonetization of big notes, Prime Minister Narendra Modi has taken the decision to encourage the digital payments in India. Also, recently in 71st Independence Day speech PM has told the nation to promote the digital payments in India.
The GST Council has said that 2% of exemption will be on GST bill of small transactions as the number of small transactions is high. Few of the sources have expressed that Rs 2000 is the largest amount. The main motto is to promote digital payments instead of cash payments. This special incentive system is focused on Less cash transaction system in India. From the month of March, the digital transaction scale was increased in India.