'Completely False, Misleading ...': Modi Govt denies GST on UPI transactions above this amount | Mint

The Government on Friday clarified that it did not strive the UPI transactions above £ 2,000 at Levy GST. The Ministry of Finance said they are completely untrue, misleading and without any basis, which the government clears up on reports that the government is considering charging goods and service taxes (GST) on UPI transactions of more than £ 2,000. “There is currently no such proposal before the government,” the ministry said in a statement. GST is charged on costs, such as the Merchant Discount Rate (MDR), related to payments made with certain instruments. From January 2020, the Central Board of Direct Taxes (CBDT) removed the MDR on person-to-Merchant (P2M) UPI transactions. “Since no MDR is currently being charged on UPI transactions, there is therefore no GST that applies to these transactions,” the ministry said. Upi transaction values ​​had an exponential increase, which growth from £ 21.3 Lakh Crore in FY 2019-20 to £ 260.56 Lakh Crore by March 2025. The ministry also said the government remains committed to promoting digital payments via UPI. To support and maintain the growth of UPI, an incentive scheme was in effect from FY2021-22. This scheme is specifically aimed at low-value UPI (P2M) transactions, which benefit small traders by alleviating transaction costs and promoting greater participation and innovation to digital payments. In 2023-24, the government paid £ 3.631 crore under the scheme, from £ 2,210 crore in 2022-23. “The total incentive payouts under this scheme reflect the government’s continued commitment to the promotion of UPI-based digital payments,” the ministry noted. First published: 18 Apr 2025, 09:44 IST