With the intention of bringing every taxpayer under the radar of GST Compliance and to evade GST frauds, the government has decided to reward everyone who pays tax honestly. Some internal sources revealed that in the form of reward from the government honest taxpayers will get a considerable relief in Income tax they are paying. The government is favouring such schemes as this will increase consumer demands and prevent GST theft. On the other hand, consumers can also get benefited from discounts on online payments.
As per the proposed scheme, honest taxpayers will get a rebate equal to the fixed portion of GST that they pay to the government. The scheme will be discussed in the coming 37th GST Council meeting.
According to this newly proposed scheme, one point will be added on every purchase done via online payment. On the basis of such points, the IT department will decide the amount of exemption. It is possible to get the rebates only when your Bank Account is linked with your PAN Card.
The scheme serves both the ways while ensuring that the taxpayers pay the right amount of tax it is also promoting digital/online payments in the market.
Read Also: GST Benefits on Digital Payments Through UPI QR Code From Next Year
As a measure to completely eradicate GST theft, the government is likely to mandate Radio Frequency Identification Device (RFID) i.e. FasTag for e-way bill. This 37th GST council meeting scheduled in Goa will discuss this scheme and its implementation across India. The probability of getting approval on this scheme is high and it may be set to operate from April 2020. The consignment may probably get affixed to the RFID tag on the vehicles, so for the IT department, it is easy to track any vehicle.
