1.    Incentive to promote Digital Transactions:

(a)    Keeping in view the need to move towards a less cash economy, the Council has discussed in detail the proposal of a concession of 2% in GST rate [where the GST rate is 3% or more, 1% each from applicable CGST and SGST rates] on B2C supplies, for which payment is made through cheque or digital mode, subject to a ceiling of ₹ 100 per transaction, so as to incentivise promotion of digital payment.

(b)    The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, before the next Council meeting, keeping in mind the views expressed in GST Council.

2.   Imposition of Sugar Cess over and above 5% GST and reduction in GST rate on ethanol:

(a)    Keeping in view the record production of sugar in the current sugar season, and consequent depressed sugar prices and build-up of sugarcane arrears, the Council discussed the issue of imposition of sugar cess and reduction in GST rate on ethanol in great detail.

(b)    The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, within two weeks, keeping in mind the views expressed in GST Council in this regard.

Incentive for digital transactions: proposed GST concession for B2C digital payments; review panel to report recommendations. Proposal for an GST concession to encourage payments by cheque or digital modes for consumer supplies, offering a small shared reduction in central and state GST components subject to a per-transaction cap, with a Group of Ministers to review and recommend before the next meeting. Separately, due to record sugar production, depressed prices and cane arrears, the Council proposed a sugar cess over existing GST and considered reducing GST on ethanol, commissioning a Group of Ministers to report within a short timeframe.