Now GST will not be applicable on Rupay Card and BHIM UPI transactions, good news came before the general budget
The central government has given a big relief to the common people even before the budget. Under which now GST will not be levied on Rupay Debit Card and BHIM UPI of low value.
The Finance Ministry has started preparations for the presentation of the Union Budget 2023-24. Finance Minister Nirmala Sitharaman will present the budget for the financial year 2023-24 on 1 February 2023. In which the common people have the hope that they will be given some relief from the government.
Let us tell you that last week, the Union Cabinet had approved an incentive scheme of Rs 2,600 crore for banks to promote RuPay debit cards and low-value BHIM-UPI transactions in the current financial year. Government to Incentive Scheme for Promotion of RuPay Debit Card and Low Value BHIM-UPI Transactions Incentive to banks as a percentage of the value of RuPay Debit Card transactions and BHIM-UPI transactions of low value up to Rs 2,000 pays the amount. The Payment and Settlement Systems Act, 2007 prohibits banks and system providers from accepting or making payments to anyone through RuPay Debit Cards or BHIM.
In a circular sent to the chief commissioners of GST, the ministry said the incentive is directly related to the subsidy linked to the value of the service. It does not form part of the taxable value of the transaction under the provisions of the Central GST Act, 2017.
It added, “As recommended by the Council, it is clarified that incentives provided by the Ministry of Electronics and Information Technology to promote RuPay Debit cards and low value BHIM-UPI transactions will not attract GST.” Such transaction is in the nature of subsidy and will not attract tax.”