Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Thursday, 9 November 2017

THIS WILL ENDEAR GST TO MILLIONS


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  ]
======================================================
=======================================================
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


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