Budget 2023-24: The Finance Ministry has started preparations to present the Union Budget 2023.
Finance Minister Nirmala Sitharaman will present the budget for the financial year 2023-24 on 1 February 2023.
In which the common people have the hope that they will be given some relief from the government.
However, the central government has greatly relieved the common people even before the budget.
Under which new Goods and Services Tax, i.e. GST, will not be imposed on Rupay Debit Card and BHIM-UPI of low value.
The government has decided to give tax exemption on incentives given to banks to promote Rupay Card and BHIM-UPI transactions. The Finance Ministry has given this information.
Let us tell you that last week, the Union Cabinet approved an incentive scheme of Rs 2,600 crore for banks to promote RuPay debit cards and low-value BHIM-UPI transactions in the current financial year.
The incentive to banks as a percentage of the value of RuPay Debit Card transactions and BHIM-UPI transactions of low value up to Rs 2,000 under
the Government’s Incentive Scheme for Promotion of RuPay Debit Card and Low-Value BHIM-UPI Transactions pays the amount.
The Payment and Settlement Systems Act, 2007 prohibits banks and system providers from charging fees for accepting or making payments through RuPay Debit Cards or BHIM.
In a circular sent to the chief commissioners of GST, the ministry said the incentive is directly related to the subsidy linked to the value of the service.
It does not form part of the transaction’s taxable value under the Central GST Act, 2017.
It added, “As recommended by the Council, it is clarified that the incentives provided by the Ministry of Electronics and
Information Technology (MeitY) to promote RuPay Debit cards and low-value BHIM-UPI transactions But GST will not be applicable.
Such a transaction is in the form of a subsidy and will not attract tax.