New Delhi, August 4: States will roll out on pilot basis incentives for digital transactions through Rupay card and BHIM app under GST, finance minister Piyush Goyal said on Saturday. The GST Council, chaired by Goyal, in its meeting in New Delhi on Saturday also decided to set up a Group of Ministers (GoM) under minister of state for finance Shiv Pratap Shukla to look into issues of the MSME sector.

Simultaneously, law and procedure related issues for the sector would be looked into by the law committee of the Centre and state tax officers, while tax rate related issues would be looked after by the fitment committee of tax officers. With regard to incentives for digital transactions, Goyal said these would be rolled out on trial basis by states who volunteer to do so. “Based on the pilot, we can asses revenue gain or loss,” he told reporters after the GST Council meeting.

A ministerial panel headed by Bihar deputy chief minister Sushil Modi on Saturday approved the proposal for incentivising digital payments through Rupay card and BHIM app by way of cashback. Once implemented, customers making payments using Rupay card and BHIM UPI, would get a cashback of 20% of the total GST amount, subject to a maximum limit of Rs 100. The next meeting of the GST Council will be held on September 28-29 in Goa.