(FE)
The Goods and Service Tax (GST) Council on Saturday decided to constitute a committee to further discuss and propose steps for easing the tax burden on micro, small and medium enterprises (MSMEs) under the year-old comprehensive indirect tax regime. Although there was no consensus on the kind of relief to be given to these units, the Delhi government has proposed that the Centre and state refund a certain portion of tax paid by MSME businesses registered for GST.
Additionally, the council approved the launch of a pilot project for incentivising digital transactions; the sops would be limited to Rupay cards and UPI-based payment mechanism. Under this scheme, a cashback of 20% of the GST would be given to consumers, with a ceiling of Rs 100 per transaction, finance minister Piyush Goyal said. The pilot will be run in states that volunteer for it. Based on the benefits of the scheme, the council would decide the scheme’s eventual rollout across the country.
