Govt. Clarifies That No Proposal to Levy GST on UPI Transactions Above ₹2,000 | Press Release
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- Last Updated on 21 April, 2025
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Press Release dated April 18th, 2025
The Government has clarified that there are no proposals to impose GST on UPI transactions above Rs. 2,000, dismissing such claims as baseless. GST is only levied on charges like the Merchant Discount Rate (MDR) for certain payment methods, but since MDR was removed for Person-to-Merchant (P2M) UPI transactions in January 2020, no GST applies to these transactions.
Additionally, the Government continues to support the growth of UPI through an Incentive Scheme targeting small merchants, with allocations of Rs. 1,389 crore in FY 2021-22, Rs. 2,210 crore in FY 2022-23, and Rs. 3,631 crore in FY 2023-24. These initiatives have contributed to India’s leadership in global digital payments, with UPI transaction values growing exponentially, reaching Rs. 260.56 lakh crore by March 2025.
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