Government of India has been working on different methods to improve digital transactions and this step happened last year itself. While move towards digital transactions started only after demonetisation or ban of currency in India on 8 November 2016. Moreover Indian Government is trying different methods so that people of this country understand uses of digitalisation and how it will help the land of India. On other hand recently Government of India announced GST tax rate.
GST on digital payments
In order to improve digital payment system there was a recent meeting among different heads of department. Main aim of this meeting was to increase awareness in general public about uses of digital payments. This can only happen when there is less Goods and Services Tax rates on various goods and services.
At the same time less GST means that people will benefit. Authorities also plan to bring some kind of cash back offers or even some discounts so that people prefer digital payment over paying in cash. However less GST (2 % less) may apply only when bill amount is maximum up to Rs. 2, 000.
Have idea on how to e – file Income Tax Returns.
Meeting of heads of departments
There has been a meeting among representatives from RBI, Finance Ministry, Ministry of Electronics and IT and the Cabinet Secretariat recently. Even Ravi Shankar Prasad, the IT Minister was present during this meeting on GST and digital transactions.
This idea of less GST added to transactions up to Rs. 2, 000 or other smaller transactions mean that India may head towards less cash economy. And if things go according to plan then there can be a time in future where there will be no cash economy. But digital transactions will be doing well. As a result we may see less corruption and more improvement in the way India is.
More transactions under Rs. 2, 000
As you can see that there are many transactions which happen in cash and most of these are below Rs. 2, 000. Authorities think that when people know more about digital or online transactions then every person will be able to use different online transaction method.
This is one of the many reasons that authorities are still thinking and are in planning stage so that every person benefits from digital transactions. Authorities will take final decision on decreasing Goods and Services Tax rate percentage on transaction of under Rs. 2, 000 after carefully studying all things.
While till the final decision releases this matter on 2 % GST on transactions up to Rs. 2, 000 will be with the Finance Ministry. You must wait for some more time before authorities announce final decision on less GST.
Know what is last date to file GST returns.