BHIM UPI Transaction: Central government is kind on BHIM UPI transaction! Government incentives to banks to promote RuPay card low value BHIM UPI transactions GST not applicable

BHIM UPI Transaction: Central Government has given big relief on BHIM UPI Transaction.

New Delhi : RuPay Debit Card (Rupay Debit Card) and on low value BHIM-UPI transactions (BHIM-UPI Transaction) The central government has been kind. Goods and Services Tax is an incentive given by the government to the banks to promote these transactions. (GST) It has been decided not to recover. The Union Finance Ministry has given information about this.

The Union Cabinet took a decision in this regard last week. RuPay Debit Card and low value BHIM-UPI transactions are being promoted in the current financial year. For this, the central government has approved an incentive scheme of Rs 2,600 crore.

The incentive is given on a percentage basis on RuPay Debit Card transactions and BHIM-UPI transactions of value up to Rs 2,000. The Payment and Settlement Systems Act, 2007 comes in handy for this. The Act prohibits banks and service providers from charging any fee.

The Finance Ministry issued a circular to the Chief Commissioner of GST. The subsidy is directly on the cost of the service. BHIM UPI transactions are not taxable as per the provisions of the Central GST Act, 2017. This decision is likely to give a boost to UPI transactions.

While cash transactions have not decreased, UPI payment transactions have increased. UPI is famous for instant transaction, ease of transaction. That’s why many people are focusing on UPI transactions. Smart mobile users are doing more and more UPI transactions.

UPI transactions created a record in the month of December. UPI transactions created a new record of 782.9 crore digital payment transactions worth Rs 12.82 lakh crore in the month of December alone. These transactions are likely to increase further in the coming days.

UPI is a real time payment system. It is used to transfer money from bank account to bank account instantly through mobile app. Through UPI you can link your bank account with UPI. You can also use multiple bank accounts through the UPI app.

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