20% GST Discount For RuPay, UPI Users; 66% Less Discount For Cashless Petrol, Diesel!
Earlier, Govt.'s BHIM Cashback offer of Rs 750/month was a huge hit.
GST Council has finally approved the long-pending demand for incentives on cashless payments of GST, for the customers.
However, at the same time, Govt has withdrawn 66% discount on cashless payments for buying petrol and diesel.
What are the fine print?
Read on to know more!
20% Off On GST For UPI, RuPay Users
A big incentive program has been announced for all RuPay and UPI users, pan-India. From now on, then when they pay for any product using these two modes of payment, then 20% on the GST would be waived off, and given as cashback.
Rs 100 is the cap for every such cashback, for any amount,
The whole process of cashback will be managed and optimized by NPCI, and the concerned merchant won’t have to put in extra efforts.
The cashback will be credited back to the specific RuPay card or UPI account of the customer.
This pilot project has been confirmed by interim Finance Minister Piyush Goyal; and was announced during 29th meeting of the GST Council, which was headed by Minister of State for Finance Shiv Pratap Shukla.
Approximately Rs 900 crore would be the expected expenditure for this rolling out this special incentive offer.
As of now, Uttar Pradesh, Bihar, Maharashtra, Gujarat, Tamil Nadu and Assam have given their confirmation to the pilot project.
Minister Piyush Goyal said, “Compliance will increase. In the longer run, it will encourage formalisation of the economy,”
As per reports, this program will be soon expanded to all other cashless transactions.
Earlier, Govt. had announced the BHIM cashback offer, which proved to be a big hit.
Discount Reduced For Cashless Petrol, Diesel Purchases
While Rupay and UPI users are getting incentives on GST in the form of cashback, credit card users are getting a raw deal here.
24 hours before announcing incentives on GST payments, Govt. has decided to reduce benefits for cashless petrol and diesel purchases by 66%.
Immediately after demonetisation, Govt. had announced discount of 0.75% for buying petrol or diesel using credit card at petrol pumps.
Now, after 20 months, the discount has been reduced to 0.25% from 0.75%, thereby triggering a direct cut of 66% in the discounts.
0.75% discount meant a cashback of Rs 0.57 paisa per litre for petrol and Rs 0.59 paisa per liter discount for diesel. Now, after the cut, the cashback will be 19 paisa for petrol and 17 paisa for diesel.
We will keep you updated, as we receive more updates.