GST on accommodation services supplied by Air Force Mess to its personnel & incentive paid by MeitY to acquiring banks for promotion of RuPay Debit Cards and low value BHIM-UPI transactions.
CBIC has issued Circular No. 190/02/2023-GST dated 13th January, 2023 clarifying applicability of GST on following two issues which were examined by GST Council in the 48th meeting held on 17th December, 2022.
The issue -wise clarifications given is as under:
Under the Incentive scheme for promotion of RuPay Debit Cards and low value BHIM-UPI transactions, the Government pays the acquiring banks an incentive as a percentage of value of RuPay Debit card transactions and low value BHIM-UPI transactions up to Rs.2000/-.
The Payments and Settlements Systems Act, 2007 prohibits banks and system providers from charging any amount from a person making or receiving a payment through RuPay Debit cards or BHIM-UPI.
The service supplied by the acquiring banks in the digital payment system in case of transactions through RuPay/BHIM UPI is the same as the service that they provide in case of transactions through any other card or mode of digital payment. The only difference is that the consideration for such services, instead of being paid by the merchant or the user of the card, is paid by the central government in the form of incentive. However, it is not a consideration paid by the central government for anyservice supplied by the acquiring bank to the Central Government. The incentive is in the nature of a subsidy directly linked to the price of the service and the same does not form part of the taxable value of the transaction in view of the provisions of section 2(31) and section 15 of the CGST Act, 2017.
It is clarified that incentives paid by MeitY to acquiring banks under the Incentive scheme for promotion of RuPay Debit Cards and low value BHIM-UPI transactions are in the nature of subsidy and thus not taxable.
No addition can be made on the basis of the statement recorded during survey u/s 133A from the husband who…
Satisfaction note u/s 153C should be prepared for each Assessment Year mentioning the documents seized in respect of each AY.…
A Writ Petition should be filed within a reasonable period, High Court dismissed Petition challenging order passed u/s 119(2)(b) In…
Excel Form 10E-Salary Arrears Relief calculator AY 2026-27 (FY 2025-26) for claiming rebate under section 89(1) of Income Tax Act…
CBIC prescribes procedure for handling of returning export cargo from international waters due to closure of the Strait of Hormuz…
Addition u/s 68 of the Income Tax Act towards entries of cash deposit in bank statement upheld even though assessee…