Quick Summary
Incentives paid by the government to banks for promoting RuPay debit cards and low-value BHIM-UPI transactions will not attract GST, the Finance Ministry said. Last week the Cabinet cleared a Rs 2,600-crore incentive scheme for banks to promote RuPay debit cards and low-value BHIM-UPI transactions in the current fiscal. Under the Incentive scheme for the promotion of RuPay Debit Cards and low-value BHIM-UPI transactions, the government pays banks an incentive as a percentage of the value o
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FAQ :
No, the Finance Ministry has clarified that GST is not payable on incentives provided by the government to banks for promoting low-value BHIM-UPI transactions and RuPay debit cards.
The incentive scheme covers low-value BHIM-UPI transactions up to Rs 2,000.
The Ministry has stated that these incentives are in the nature of a subsidy, directly linked to the price of the service, and therefore do not form part of the taxable value of the transaction under the Central GST Act, 2017.
The Cabinet has cleared an incentive scheme worth Rs 2,600 crore for the current fiscal year.
Yes, the article also clarifies that GST is not payable on accommodation services provided by Air Force Mess and similar messes to their personnel or non-business entities.
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