Are you a frequent user of Rupay debit cards, BHIM app, Aadhaar, UPI or USSD transactions? If yes, you may now enjoy a special GST cashback.
In an attempt to promote cashless transactions in rural and semi-rural India, the government will now enable volunteering states to provide a 20% cashback to customers using one of the above-mentioned modes of digital payments (subject to a maximum limit of Rs. 100). The government is testing the cashback offer with volunteer states and is preparing a software and backend to roll out the pilot.
The government hopes the GST cashback will not only help push the digital India initiative but also help build the economy as a whole.
Re-Look at the MSME Laws
The GST Council has also promised to relook into the law, procedures and the rates related to the MSMEs; to help ease operations. While larger businesses bring in more tax, smaller businesses help increase the employment rates in the country.
Digital payments in India is set to become a trillion dollar market. As more global giants enter the Indian business ecosystem, mobile payments could see a boom.
Our take on GST Cashback:
Even though India has the largest mobile users, there is a huge gap to be filled. Over 40% of India still does not have a bank account! Nearly, 80% of payments are made through cash.
The GST cashback can be an ideal way of pushing this population to adopt cashless transactions.
Tax experts deem it a welcome move with a rather small impact on revenue. It is also an effective way for the government to maintain a database containing the digital footprint of their taxpayers.
If your State has volunteered for the pilot, you will be eligible for a cashback on your transactions. With Instamojo, you can now not only enjoy safe and secure digital transactions but also let your customers avail this cashback. Give your customers the freedom to pay with any mode including BHIM UPI, Rupay and more.