Quick Summary
Claims that Government is considering levying Goods and Services Tax (GST) on UPI transactions over ₹2,000 are completely false, misleading, and without any basis The claims that the Government is considering levying Goods and Services Tax (GST) on UPI transactions over ₹2,000 are completely fals
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FAQ :
No, the government has clarified that rumours about levying GST on UPI transactions over Rs 2000 are completely false, misleading, and without any basis. There is no such proposal.
Currently, GST is not applicable to UPI transactions because the Merchant Discount Rate (MDR) on Person-to-Merchant (P2M) UPI transactions was removed effective January 2020. Since no MDR is charged, there is no GST applicable.
The government is committed to promoting digital payments through UPI. An Incentive Scheme has been operational since FY 2021-22, specifically targeting low-value P2M UPI transactions to alleviate costs for small merchants and encourage wider participation.
The government has allocated substantial amounts for UPI incentives, with ₹1,389 crore in FY2021-22, ₹2,210 crore in FY2022-23, and ₹3,631 crore in FY2023-24.
India is a global leader in digital payments. According to the ACI Worldwide Report 2024, India accounted for 49% of global real-time transactions in 2023. UPI transaction values have also seen exponential growth.
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