The government has proposed a 2% point discount in the Goods & Services Tax (GST), for consumers who make digital payments.

It is expected that the proposal is to be taken up in the next GST Council meeting in January. If the proposal gets approved, than we may see an increase in cashless transactions.

The discount will be available to business-to-consumer (B2C) transactions, for goods and services that has a GST rate of 3% or more. Further, the incentive will include a 1% concession on the Central GST and another 1% on the state GST.

Moreover, the customer will be provided 2 prices, one with the normal GST rates and the other with 2% points lower GST for digital payments.

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