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    GST Council has recently announced in the 29th GST Council meeting an incentive in the form of a cashback to consumers for making payments of their GST Bills via prescribed Digital modes. The cashback is 20% of the GST component with a cap of Rs 100 and this will be credited to the Bank account of the consumer linked to the card or User ID.
    Although this is going to be implemented on a pilot basis, this is expected to widely promote the Government’s premier initiative, Digital India.
    Some of the modes of digital payments announced at the GST Council meeting include:
     
  1. USSD
  2. UPI
  3. BHIM
  4. RuPay card

1. USSD

Unstructured Supplementary Service Data is a mobile system used in communication technology to send data between a mobile phone and an application. USSD service can be used to initiate fund transfers and receive bank statements. To enable USSD:
  • The mobile number of the customer should be the same as the one linked to the respective bank account
  • Dial *99#, following which, you can interact with an IVR menu and follow the instructions

2. UPI

Unified Payments Interface is a system that links multiple bank accounts into one single mobile application. A customer holding a bank account can send and receive money through a UPI-based application. In other words, this service allows a user to link more than one bank account to easily initiate fund transfers on a 24/7 year round basis with no additional charges. The main advantage of UPI is that it enables users to transfer money without a bank account or an IFSC code. How to use UPI:
  • Download the application on Android or iOS 
  • Register for the service by providing bank account details
  • Create a Virtual payment address (VPA), get a Mobile banking Personal Identification number (MPIN) and start using

3. BHIM

Bharat Interface for Money allows users to make payments using the UPI application. The BHIM app can be used by anyone who has a mobile number, debit card and a valid bank account. Money can be transferred to different bank accounts. How to Use BHIM App:
  • Download and install the BHIM app from Android/iOS
  • Choose a language
  • Register for the service by providing mobile number linked to the respective bank account
  • Fill in Bank details and set up a UPI PIN to begin using

4. RuPay card

 RuPay derived from the words ‘rupee’ and ‘payment’ was launched on 26th March 2012 by the National Payments Corporation of India (NPCI) to integrate various payment systems in India. This is the first domestic (Indian) card network and payment gateway.  All citizens of India can apply for a RuPay card from most public, private or co-operative banks. An interested customer can approach any bank, open a savings account and obtain a RuPay Debit Card.
  Digital India is aimed at building India into a digital economy. A major function of the program is to promote a cashless society via various modes of digital payments being made available.
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