Saving Two Birds
with One Grain ?
========================
Being a Jain , I could not get myself to
say : Killing two birds with one stone
But , in its meeting tomorrow, GST Council is reported to consider acceptance of my
suggestion to incentivize Digital Payments
Here is what today’s Economic Times reports :
GST Council may discuss proposal tomorrow, has
option of incentivising merchants &
customers
A year after demonetisation, India is
getting ready to give digital payments yet another push.
It could consider providing incentives in the goods and services tax
(GST) regime for payments that are settled electronically .
“There
is a thinking that digital transactions need to
be incentivised... The
council will look at what could be done,“
As far as digital payments are concerned,
the council has the option of incentivising merchants and customers.
Under the proposal, benefits in terms of credit or exemption
could be provided within central and state GST to encourage such transactions.
A merchant could, for instance, get credit
for digital payments that can be adjusted against GST liabilities.
Consumers, on the other hand, could be incentivised through lower tax when payments are made
digitally .
====================================================
MY REQUEST TO THE GST COUNCIL :
While considering “ Incentivizing of Digital Payments “ , seize
this opportunity of providing “ Universal
Social Security “ to millions of Indians , who are , today , NOT covered by any PROVIDENT FUND scheme , as outlined in my following earlier emails :
Jan Dhan Sarjan Yojana……………….. [
31 Aug 2015 ]
======================================================
GST Conundrum : A compromise Formula [
28 July 2016 ]
=======================================================
How to universalize Social Security [
01 July 2017 ]
=======================================================
Three Sides of a Triangle ……………… [
28 Aug 2017 ]
Where , I suggested as
follows :
*
If GST is going to be ( say )
20 % , Government will transfer from this ,
2 % ( ie 10 % of that 20 % ) , to the PPF account of the Consumer /
Buyer , who pays for the Goods / Services purchased , using a RuPay
Card or a " Mobile Wallet " app
This will motivate millions of self -
employed to open PPF accounts !
{
In cases of Buyers who , do not have a PPF account on the date of her first
Digital Payment , the Mobile App will
AUTOMATICALLY register / open such an account and the Buyer will get an
SMS intimation ! No hassle to open a PPF account ! }
* Since interest from a PPF account is tax-free , every
citizen would , now
want to make all payments thru RuPay card or a Mobile Wallet App
* RuPay cards are already tied up with
accounts opened under Jan Dhan
Yojana
* Mobile Wallets Apps will also get tied-up
with thousands of branches of
Payment Banks , which will open in next 18 months
Just imagine the number of new accounts
that will get opened in the
1,55,000 + post offices of India Post !
*
In this way , Social
Security will become " Self Financing " !
* Currently , in India , some 97 % of all
payments are " Cash Payments ".
With introduction of this proposal , these will drastically decline
* Any payment made , using RuPay card or a
Mobile Wallet App , will make
available to the Income Tax Department , full digitized record of each
such transaction , including :
# Who made
the payment
# To whom was
that payment made
# When was
that payment made
# For what purchase
, was that payment made
# What was
the amount paid
* One , very desirable consequence of
Jan Dhan Sarjan Yojana
will
be that our " Domestic
Savings Rate " will climb
back to 30 % !
===================================================
09 Nov 2017
www.hemenparekh.in
/ blogs
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