Central

Section 31A of The Central Goods and Services Tax Act, 2017

1[31A. Facility of digital payment to recipient.-- The Government may, on the recommendations of the Council, prescribe a class of registered persons who shall provide prescribed modes of electronic payment to the recipient of supply of goods or services or both made by him and give option to such recipient to make payment accordingly, in such manner and subject to such conditions and restrictions, as may be prescribed.]

Summary

This rule gives the government the power to require certain classes of businesses to offer digital payment methods to their customers.
Customers of these specified businesses are given the clear option to pay using these electronic modes.
The government makes these rules based on the recommendations of the tax council.

Practical examples

1The government notifies that all large retail chains must offer digital payment options. Rahul, who owns a registered supermarket, adds electronic payment terminals to let customers pay digitally in July 2026.

2A customer buying clothes at a notified store is given the option to pay using a prescribed electronic mode, rather than being forced to pay in cash, as required by the government rules.

FAQ

1. Can the government mandate businesses to accept digital payments under Section 31A of The Central Goods and Services Tax Act, 2017?

Yes, under Section 31A of The Central Goods and Services Tax Act, 2017, the government can prescribe a class of registered persons who must provide prescribed modes of electronic payment to recipients.

2. Do customers have to use the digital payment facility under Section 31A of the CGST Act?

Under Section 31A of the CGST Act, the customer is given the option to make payment accordingly, meaning the facility must be provided for them to choose.

3. Who decides which businesses must offer electronic payments under Section 31A of the GST Act?

Under Section 31A of the GST Act, the Government decides this based on the recommendations of the Council.

Test yourself

Q1.Under Section 31A of The Central Goods and Services Tax Act, 2017, who decides which registered persons must provide electronic payment facilities?

Q2.What is the primary purpose of Section 31A of the CGST Act?

Q3.Under Section 31A of The Central Goods and Services Tax Act, 2017, what choice is given to the recipient of a supply?

Q4.Which of the following is true about the digital payment facility under Section 31A of the Central GST Act?

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