In the GST (Goods and Services Tax) Council meet on Saturday, a 20 percent cashback on the total tax amount for BHIM UPI and RuPay users was approved. Interim Finance Minister Piyush Goyal told reporters today that in order to promote digital transactions especially in rural India and formalization of the economy, the cashback plan up to a maximum of Rs 100 was approved on a pilot basis.
The plan was approved by the Group of Ministers (GoM), who drew out an incentive plan for digital transactions. The cashback offer of 20 percent on total GST amount, subject to a maximum of Rs 100 will be available for customers using BHIM app and RuPay card to make payments.
Goyal further said that it was now up to the states on how they wished to take it forward. Some states were not happy with the proposal as it would affect their revenue.
He was also said that if the pilot project becomes successful in formalizing the economy, it would be extended to other users.