As reported earlier, the GST Council had in May discussed offering a 2% concession in GST rate to consumers making payment through cheque or digital mode.
The panel is headed by Bihar deputy chief minister and Finance Minister Sushil Kumar Modi and will recommend to the Council, the apex decision making body, to defer any concessions for a year.
Modi said: “The Group of Ministers (GoM) will be recommending to the Council that it may think about the proposal of incentivising digital transaction again after a year. The GoM is recommending deferring the proposal for a year.”
Modi added the GoM on digital transaction has decided that this is not an opportune moment to incentivise digital payments as it will have revenue implication.
He said: “Let returns and GST revenues stabilise, then we can think about incentivising digital transaction.”