“Mera Bill, Mera Adhikar” – India’s New Prize System

INTRODUCTION TO MBMA SCHEME:

Tax system of India continues to get reformed with the introduction of new concepts and schemes day by day. Earlier the Indian government revolutionized the indirect taxation by orientation of GST in the taxation system and now announcement of MBMA scheme to widens the reach of GST with effect from 1^st September 2023. Let’s understand the scheme in detail.

GOODS AND SERVICE TAX EXPLAINED:

Before the scheme, GST must be clearly understood. Goods and service tax i.e., GST is an indirect tax levied on the supply of goods and services. It is based on the notion of “one nation, one tax”. In other words, it is a single uniform tax for the whole country. GST is a destination-based tax that is levied on every stage of value addition. Thereby, it is also known as a multi stage tax.

This comprehensive tax repealed and replaced multiple taxes such as excise duty, service tax, VAT and many more. It has become the umbrella tax by consolidating every other tax in its ambit. It is a reform in the indirect tax system of the country. GST is reflected internally on the final price on the supply of goods and services. This means that consumers are required to pay this tax included in the final price of the goods and services to the seller who in turn submit it to the government.

GST first found its place in the budget speech of 2006 by the finance minister of India. The constitution Amendment bill was passed by both the houses till August 2016. It then received the assent of the president on 8^th September 2016. GST is enacted as constitutional 101^st Amendment Act, 2016. It was Implemented from 1^st July 2017.

MBMA SCHEME:

MBMA Scheme is an abbreviation for “Mera Bill, Mera Adhikar”; also called “My bill, My right”. It is invoice incentive scheme launched by the central government in coordination with the state government. The scheme is set for launching on 1^st September 2023. This aims to promote the usage of Invoice habit in B2C transaction i.e., Business to consumer transactions among the customers.

Those consumers who participates in the scheme by uploading their GST invoices in accordance with the scheme will get a chance to win cash prizes ranging from Rs.10,000 to Rs. 1 crore. The government will choose the winning invoices at regular monthly and quarterly intervals by use of a random draw process.

LAUNCHED BY:

The central government ministry of finance introduced “Mera Bill, Mera Adhikar” scheme. This scheme was the idea of CBIC. CBIC stands for Central Board of Indirect Taxes. It is a fundamental part under ‘department of revenue’ of ‘finance ministry’. This board is a superior administrative authority for various subordinate organs such as custom houses, central GST Commissionerate. It is a governing body which regulates all the changes and amendments in the GST system of the country.

OBJECTIVES OF MBMA SCHEME:

By virtue of this scheme, the government aims for the following targets:

• Encouraging consumers to request for proper Invoices from the seller;
• Curbing tax invasion
• Promotion of transparency in all B2C transactions
• Ensuring that consumers are paying correct amount of tax and are not an easy target for the sellers.
• Promoting the culture of tax compliance.
• Educate the citizens about benefits of GST.
• Create awareness regarding the right of consumers.

WORKING MECHANISM:

The process to avail the benefits of this scheme is very simple. This scheme requires the consumers to avail the GST invoice from the seller on every purchase of goods or services. This invoice is to be uploaded by the consumer in PDF format on the mobile app or web portal launched by the central government under the same name “Mera bill, Mera Adhikar”. The mobile application is made available easily for both iOS and Android user.  For uploading the Invoices, consumer needs to create an account on the portal by use of their mobile number. Invoices should contain details like GSTIN (Goods and Services Tax Identification Number) of the seller, invoice number, amount paid and tax amount.  After pdf upload, the portal will require verification of invoice details such as GSTIN, Invoice number, Date of invoice, Value of invoice, State/ Union territory of the consumer.

With each upload, an ARN i.e., Acknowledgement Reference Number will be generated which will be later on used in the prize draw.

The winners are then notified by the app or SMS. They will be allotted a time period of 30 days from the date of notification of their win to submit the additional information such as PAN no., Aadhar card number and bank account details through the mobile application or web portal.

PILOT MBMA SCHEME:

MBMA is a pilot scheme launched only for a period of 12 months. Pilot scheme is basically an experiment to test the response to a brand-new ides or concept before its full-scale introduction or extension. It is a small-scale experimentation to recognize and observe a response pattern.

PRIZE STRUCTURE:

As this scheme will run initially for only 12 months, there will be total 10 monthly prize draws and only 2 quarterly draws. The prize money to be monthly awarded stands at Rs. 10,000 while the quarterly awardable prizes could stand up to 1 crore Rupees.

USE OF TECHNOLOGY:

With the technological development, the ideas of digital schemes are also developing. The extended use of digital technology in the MBMA scheme launched by the government strive towards making India, a digital India. Online uploading of documents, digitally receiving the prizes would encourage the people to trust the Banking as well as online platforms of the country.

MINIMUM AND MAXIMUM REQUIREMENT:

To avail the scheme the minimum purchase value for B2C transaction is fixed up to Rs. 200 for the consumers. The consumers are permitted to upload maximum 25 invoices to be considered for the lucky draw. All bills issued by GST registered suppliers are eligible to be uploaded on the portal.

WHO CAN PARTICIPATE:

All the residents of the country are welcome to participate in the scheme. The prizes would be offered to only those who are from the respective five states and UT where the scheme is initiated.

EXTENT OF MBMA SCHEME:

Initially the scheme is set to be launched in the following states and union territory for a period of one year. Names of states and UT are:

• Assam;
• Gujrat;
• Haryana;
• Puducherry;
• Daman and Diu;
• Dadra and Nagar Haveli.

ATTACHED INSTRUCTION:

Deliberate Effort has been made by the government to minimize the conflicts and ambiguities among common people regarding it.

• The system is designed to automatically reject duplicate, fraudulent or Inactive GSTIN.
• Only the official notification from the app will be used to notify the prize winners of the scheme.
• All invoices uploaded during the previous month by the fifth of the next month will remain eligible for monthly draw.
• For Bumper quarterly prize, the invoices uploaded in the last 3 months till fifth of the bumper draw month will be considered for the draw

CONCLUSION:

Being a responsible customer of the economy, everyone should encourage such efforts of government for more and more promotion of GST in India which will ultimately support the growth of economy.