Synopsis: The Finance Ministry has clarified there is no proposal to impose GST on UPI transactions above ?2000. The clarification follows a query raised in the Rajya Sabha, providing relief to digital payment users across India.
Amid growing concerns about possible taxation on UPI transactions, the Ministry of Finance has issued a clear statement denying any move to levy GST on transactions above ?2,000.
This clarification came in response to a question raised in the Rajya Sabha on July 22 by Congress MP Anil Kumar Yadav. The MP asked whether the government is considering a proposal to levy GST on such transactions and if any public objections had been received regarding the potential policy.
Replying to the query, Minister of State in the Finance Ministry, Pankaj Chaudhary, firmly stated,
“No such decision has been taken by the government.”
He also mentioned that the GST Council, a constitutional body consisting of members from both the Centre and State governments, has made no recommendation regarding GST on UPI payments.
Earlier in April, the Finance Ministry reiterated its commitment to promoting digital payments through the Unified Payments Interface (UPI). It clarified that GST is applicable only to charges like the Merchant Discount Rate (MDR), which, notably, has been waived for Person-to-Merchant (P2M) UPI transactions since January 2020.
To further strengthen UPI’s growth, the Incentive Scheme for P2M UPI transactions, launched in FY 2021-22, continues to aid small merchants by offsetting transaction-related costs and encouraging broader digital payment adoption.
In essence, users can continue making UPI payments—even beyond ?2000—without fearing additional GST charges.
Disclaimer: This article is based on official government statements and parliamentary records as of the latest available information. Policy decisions may evolve; readers are advised to follow official updates from the Finance Ministry for any future changes.
