NDTV-Mastercard Cashless Bano India

GST Amounting To Rs 10,000 Or More Only To Be Paid Via Digital Means

GST Amounting To Rs 10,000 Or More Only To Be Paid Via Digital Means

Highlights

  1. GST is scheduled to roll out on July 1
  2. Payment of GST more than Ra 10,000 only via digital means
  3. GST will encourage merchants to make cashless payments
New Delhi: As India gears up for the rollout of Goods and Services Tax (GST) on July 1, the government has announced that it favours digital payments of tax amounting to Rs 10,000 and more. Taxes amounting to Rs 10,000 and more will have to be paid using digital means such as debit/credit card, internet banking or using transfer mechanisms such as NEFT or RTGS. The move is not surprising, considering that post demonetisation of November 2016, the government has encouraged more people to shift towards cashless transactions.

The payment rules were laid down by the Central Board of Excise and Customs (CBEC), which recommends that merchants, traders and shopkeepers who were required to pay GST above Rs 10,000 would have to do so via digital methods. Apart from outstanding tax amounts, no amount would be permitted to be paid via over-the-counter cash payment. The CBEC also stated in a bid to encourage cashless payments of taxes, it will look to incorporate other digital means to facilitate payment of taxes, in the future.

The move is being seen as a stern step to ensure that tax evasion is prevented. Anyone who was earlier paying taxes such as central sales tax or service tax, and in possession of a Permanent Account Number (PAN) will be allotted a GST Identification Number (GSTIN) would be available on the GST Network portal, where they can make payments.


This move will serve dual purposes for the government. It will encourage more traders and merchants to opt for cashless payments of the tax, as a majority of them will be paying an amount more than Rs 10,000. This will also ensure that merchants or traders who would earlier compromise with tax payments will no longer be able to do so as cashless payment methods will ensure that the right amount is paid, said R.S. Goyal, Senior Tax Consultant, Goyal Associates.


Apart from a check on tax evasion, the government hopes to encourage small traders and merchants to have functional bank accounts and familiarise themselves with digital payment mechanisms as they will find it useful when paying the tax online.

This is also a good way to bring more merchants and traders under the cashless ambit. They can make themselves familiar with processes such as internet banking, usage of debit or credit cards and pay the required amount of taxes. Indirectly, GST will encourage traders to adopt cashless means of payment and reduce dependency on cash, said Mr. Goyal.

Share this story on

About The Campaign

About The Campaign

NDTV along with MasterCard is launching a multi-platform campaign “Cashless Bano India”, to create digital awareness and educate the masses about digital payment solutions for day to day transactions.

The campaign aims to take the message of a cash free India to the country, all while educating them on the ways and means to do it.

We aim to reach out to people and educate them on:

1). Digital and financial literacy

2). New generation digital payment solutions

3). Enabling merchants and consumers to understand and adopt secured and safe payment Solutions

4). Ease of usage at point of sales