Govt. Will Reward Businesses, Consumers if They Use Digital Payments!
Govt. wants to push digital payments across all sectors, with cashbacks and rewards.
Govt. of India is now all set to unleash the second wave of discounts, rewards and cashbacks for using digital payments.
Both businesses and end-users would be now rewarded, if they opt for digital cash.
Pay Digitally & Get Cashback!
Taking a clue from mobile wallets and ecommerce firms, which has expanded their presence using cashbacks and discounts, Govt of India too is now keen to encourage digital payments, using the same mode.
Revenue Dept. has sent a proposal to Govt. of India and GST Council, suggesting cashbacks and discounts for both businesses and consumers, if they opt for digital payments.
Here is an overview of the same:
For Consumers: Discount on MRP of any product, if they pay digitally. Capped at Rs 100.
For Businesses: Slab-based cashback, based on the number of digital payments received.
For Businesses: Tax Relief, if they receive digital payments. The mechanism would be similar like Input-Tax Credit under GST. This will be also slab based, depending on the number of digital transactions.
For Businesses: Decreased GST liability, if they are able to successfully receive a minimum number of digital payments.
GST Council and Finance Ministry will go through the proposals, and a final decision will be taken soon.
Rewards For Digital Payments Rising!
This is the latest salvo which Revenue Dept. has fired, related with encouraging digital payments, and make it a habit for end-users.
In 2016, Govt. of India had announced a massive exercise to promote digital payments, by rolling out lucky draws and lottery for those businesses and consumers, who are using digital payments.
Rs 340 crore was allocated for this exercise, which proved to be a big hit.
Last year, a proposal to induce 2% rebate on GST was announced, for those businesses which carry maximum digital payments. The intentions was same: Encourage more digital payments.
This month, BHIM users were offered cashback upto Rs 750 every month, based on their overall usage and money transfer.
And now, the proposal to attract businesses into the world of Digital Payments has been proposed, which can trigger a new wave of digital payments, across India.
India is all set to cross $1 trillion digital transactions by 2025, and if Govt. keeps on rolling out offers like these, then it would be achieved much faster.
Do you think such cashback offers will work in India? Do let us know by commenting right here!