GoM Moots Cashback of Up to Rs 100 on Rupay Card, BHIM Transactions | CORPORATE ETHOS

GoM Moots Cashback of Up to Rs 100 on Rupay Card, BHIM Transactions

By: | August 6, 2018

Aug 6: Customers making payments through Rupay cards and BHIM UPI might soon get a cashback of 20% of the GST amount. The proposal will be put forward to the GST Council by the Sushil Modi-led ministerial panel that was appointed to go through the matter in detail.

Once implemented, customers will be receiving a cashback of 20% upon the GST amount involved in the transaction. Users can get a maximum cashback of Rs100 for every transaction carried out using Rupay cards and BHIM UPI.

The move has been proposed with an aim of encouraging digital payment modes especially in semi-urban and rural areas. At present, all Jan-Dhan account holders have been provided with Rupay debit cards. The ministerial might also consider expanding the cashback offer to all other cards after evaluating the success of the current move.

The move will have an annual revenue impact of Rs 1,000 crore, which will be shared equally by central government and state governments. Other details regarding the cashback scheme hasn’t yet been worked out. Detailed modalities will only be worked out once the GST Council clears the proposal. Details like after how long users will get cashback etc. will only be know after that according to Bihar Deputy Chief Minister Sushil Modi.

GST Council had earlier assigned the Group of Minsiters (GoM) led by Sushil Modi to work out modalities for incentivising digital payments under Goods and Services Tax (GST). The five-member GoM includes Gujarat Deputy Chief Minister Nitinbhai Patel, West Bengal Finance Minister Amit Mitra, Haryana Excise and Taxation Minister Capt Abhimanyu and Punjab Finance Minister Manpreet Singh Badal.

Prior to the current proposal, the GST Council had discussed about the possibility of giving 2% to consumers making payment through cheque or digital mode.

The GoM had earlier decided to defer the proposal of incentivising digital payments using all modes of online payments by a year. The GST council later asked the GoM to work out modalities for incentivising digital payments made through Rupay and BHIM UPI.