The Indian government has dispelled rumors about imposing GST on UPI transactions over Rs 2,000, affirming its commitment to promoting digital payments. The Ministry of Finance clarified that there are no plans for such taxation, and no GST is applicable on UPI transactions, which remain exempt from Merchant Discount Rate (MDR) charges.
The Ministry of Finance of India has officially denied recent rumors claiming that the government was planning to impose Goods and Services Tax (GST) on Unified Payments Interface (UPI) transactions exceeding ₹2,000. The government has termed these rumors as baseless and misleading, stressing that such claims were unfounded.
UPI, a digital payment platform launched by the National Payments Corporation of India (NPCI), has revolutionized financial transactions in the country, allowing millions of users to send money and make payments with ease. With no Merchant Discount Rate (MDR) charges applicable on UPI transactions, the government has emphasized that there is no GST involved in such transactions.
The clarification comes amid a wave of misinformation circulating about a potential tax on higher-value UPI transactions. The Ministry reassured the public that these claims were false, reaffirming the government’s unwavering commitment to promoting digital payments and ensuring the continued growth of UPI, which has emerged as a leader in the global digital payment landscape.
The government has also emphasized its ongoing efforts to enhance financial inclusion and support the development of a cashless economy. As of now, UPI continues to be free from any additional charges like GST, making it a vital tool in India’s growing digital economy.
The Ministry’s statement serves as a reminder that the government remains focused on simplifying the tax structure and supporting technological innovation in the payments sector. With UPI playing a crucial role in India’s digital payment ecosystem, the government’s clarification aims to dispel doubts and ensure that the public can continue to rely on this secure, efficient platform for their transactions.
