Letter to BS: GST Council's cashback incentive to promote digital payments
Though this move will make customers and retailers happy, there will be a huge shortfall in the revenue collection for the government
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This refers to “GST council shows maturity” (August 6). Giving 20 per cent cashback to people paying goods and services tax (GST) through RuPay or BHIM mobile app is a welcome decision. It serves two purposes — it motivates people to use these digital applications and become part of the system in a transparent manner by paying GST. Prime Minister Narendra Modi has always insisted on cashless transactions, more so post demonetisation. This move is also aimed at making people adopting digital payment method and contributing to the country’s growth. Though this move will make customers and retailers happy, there will be a huge shortfall in the revenue collection for the government. However, a decent monsoon should help demand pick-up and in giving impetus to tax collection.