The volume of digital payments made by Indians in the current financial year is set to hit 70 billion at the current pace and easily surpass the record levels of 2020-21 when the Covid-19 pandemic had hit home and made people shift to doing digital payments in a big way.
The government in a presentation on Monday at an internal conference said the volume of digital payments in the present financial year had touched 45.53 billion already with four months still to go for the financial year to end. This is already in touching distance of 45.72 billion digital transactions in the entire financial year of 2019-20 before the pandemic, and could cross 55.54 billion digital transactions done in the last financial year. A senior government official told News18: “There is no stopping the march of digital payments in India now. This financial year may end with nearly 7,000 crore digital transactions.”
These figures include digital payments made under 16 different digital payment modes. Nearly half the digital transactions this financial year have been done using the BHIM UPI mode, which accounts for nearly 22.66 billion digital transactions so far. This is already more than 22.32 billion digital transactions done in entire 2020-21 using the BHIM UPI platform when it accounted for 40% of all digital transactions, signifying the high growth in this payment mode. “Clearly, people have got used to the ease of doing digital payments and the wide acceptance of the same across merchants and online transactions,” an official said.
Digital Impact on GST
The government presentation said digital initiatives had accelerated the GST implementation as well with eWay bills crossing the figure of 2 billion since 2018 and e-invoices crossing the figure of 1 billion. The eWay bill can be generated from an online self-service platform as a permit for movement of goods, a move that is increasing GST compliance. It leads to abolishment of check posts, encourages self-reporting, reduces transport time and improves tax collection and compliance, the presentation said. The state of Maharashtra has accounted for the highest number of nearly 0.29 billion eWay bills so far.
The e-Invoices system was meanwhile described in the presentation as a “game-changer in GST implementation” with the number of e-Invoices rising ten-fold from a year ago at its launch and crossing 1 billion as of now. This is seamlessly integrated with eWay Bill system.
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