Ministry of Electronics and Information Technology (MeitY) and MeitY Startup Hub announces(MSH) “Fintech Innovation Challenge for implementation of concession on GST component of payment made through digital modes i.e., RuPay (Debit card) and BHIM UPI”. Government is contemplating to provide 20% GST concession on the B2C transactions made through RuPay (Debit card) and BHIM UPI, subject to the total ceiling of Rs.100. The concession may be given to the consumers either in the form of instant cashback or upfront discount while making the payment.
About Fintech Innovation Challenge
Fintech Innovation Challenge seeks solution for the stated “Problem statement”
Implementation of discount/cashback as a percentage of GST amount to the consumer on transactions made through RuPay (Debit card) and BHIM UPI, subject to a ceiling of Rs.100.
Example: A customer purchases an item of value Rs.100 which falls in the 18% GST slab. The customer has to pay Rs.118 (Rs.100 + Rs.18). As per scheme, a discount of 20% on the GST amount is Rs.3.6 will be given to customer as instant cashback or discount. Hence, customer will either pay Rs.118 and get Rs.3.6 as instant cashback or will pay discounted amount Rs.114.4. Further, merchants need to file GST as per their existing process with either the reduced amount (Rs.14.4 instead of Rs.18) or they file complete GST amount, i.e.,Rs.18 (Rs.14.4 + Rs.3.6), the differential amount of Rs.3.6 may be reimbursed to the merchants.
Some of the important identifiers like GSTno., payable tax and discount amount are to be captured for UPI and RuPay(Debit card) transactions. GSTN should also be able to verify the discount/cashback details as and when required. NPCI, being the settlement/certifying institution, may need to store and share only relevant data as per the prevailing data protection policies.
The challenge will be conducted in three stages:
Stage 1. Screening of applications received at MeitY Startup Hub(MSH) Portal.
Stage 2. Presentation and submission of detailed implementation strategy by selected 10 entries from Stage 1.
Stage 3. Top 3 entries of Stage 2 will be implementing and presenting Proof of Concept (PoC) to test/verify the working of their solution.
Awards & Recognition
- Recognition and certificate from MeitY for “innovative solution” for "GST linked tax incentive scheme for digital payments" for the top 10 entries selected from Stage-1.
- Cash reward of Rs 1 lakh each to the best three entries of the Stage-2
- Amount of Rs 3 lakhs will be given to the entities who successfully demonstrate their PoC as per the evaluation committee.
For detailed information about the Challenge visit MeitY Startup Hub Website. View Website