BackGoM on sops for digital payments under GST to study revenue impact
The GoM will also study international best practices on moving towards a less-cash economy
PremiumNew Delhi: A group of state finance ministers exploring incentives for digital payments under the goods and services tax (GST) will study the revenue losses from such a move as well as look at international experiences of promoting digital economy, said the ministers.
The ministers will also discuss whether concessions in GST rate should be given for purchase of demerit or sin goods.
The meeting on Friday remained largely inconclusive and officials were asked to gather more data on the impact of the concession to digital payments.
Sushil Modi, deputy chief minister of Bihar, who is heading the group of ministers, said one more meeting will take place in the next ten days wherein a decision will be taken.
The final decision will be taken by the GST council.
Punjab finance minister Manpreet Singh Badal said models of countries like Korea and Brazil will be studied.
He added that another issue that is being looked at is whether there should be a negative list or a positive list of commodities which are evasion prone, he added.
The previous meeting of the GST council had debated whether digital transactions should get a 2% concession. However, after opposition from a few states, the matter was referred to the group of ministers.
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