NEW DELHI: The government has estimated that the Centre and the states may have to forgo up to Rs 15,000 crore in offering discounts of up to Rs 100 on GST for every digital transaction, including those done using credit or debit cards or mobile wallets and mobile and net banking.
Sources said the estimate is based on the average ticket size of the transaction being Rs 1,400 and a 2% relief being proposed on it. In case of transaction size of Rs 900 and assuming that 40% of the estimated 1,329 crore transactions were using digital payment tools, the revenue foregone would be of the order of Rs 9,500 crore a year.
The plan is limited to business to consumer (B2C) transactions for goods and services that attract 3% or more levy.
The issue was discussed at last week’s GST Council meeting but a decision was deferred as a couple of states, including West Bengal, opposed the plan and in the absence of a consensus a group of state finance ministers headed by Bihar deputy CM Sushil Modi was constituted. The panel will submit its report in a fortnight.
The credits are linked to consumers’ social security numbers, which can be used to speed up passport, driving licence issuance or other facilities. While officials reckon that this will be easier to implement in India, given the widespread issuance of Aadhaar, there is no move to have a similar policy in place, at least for now.