NEW DELHI: Govt on Friday clarified that it is not considering to levy GST on UPI transactions above Rs 2,000. Clarifying on reports, which said govt is considering levying GST on UPI transactions over Rs 2,000, the finance ministry said they are false, misleading, and without any basis.
GST is levied on charges, such as Merchant Discount Rate (MDR), relating to payments made using certain instruments. Effective Jan 2020, the CBDT has removed MDR on person-to-merchant UPI transactions. “Since currently no MDR is charged on UPI transactions, there is consequently no GST applicable to these transactions,” the ministry said. UPI transaction values have seen an exponential increase, from Rs 21.3 lakh crore in 2019-20 to Rs 260.6 lakh crore by March 2025.agencies
