Tax will be imposed on UPI transactions of more than Rs 2000! Government issued a statement
Nowadays, whether it is a vegetable vendor or someone buying something from a shop, everyone takes out the mobile and scans the QR code and the payment is done in a few seconds. Even a beggar will have a QR code. This is the wonder of UPI.
It has made our daily life very easy. But recently a news is becoming increasingly viral on social media. In which it is being claimed that 18% GST can be levied on UPI transactions above two thousand rupees. This news has confused many people that will it become expensive to make payments through mobile now? Let’s know what is the truth?
Government clarified on UPI GST On UPI Transactions
The Finance Ministry has now issued a clear statement regarding these news. The government has said that no tax of any kind will be levied on UPI transactions at present and neither is any such proposal under consideration.
The ministry dismissed the rumours and said bluntly that “there is no plan to impose GST on UPI payments.” The government clearly says that it wants to promote digital payments more. Not to keep it away from the people by imposing tax on it.
MDR has already been removed on transactions
The government had already removed MDR (Merchant Discount Rate) on UPI transactions from customer to merchant in January 2020 itself. That is, when you make payment to a shopkeeper through UPI, he no longer has to pay any additional charge. The ministry also clarified that when there is no MDR, then the question of imposing GST on it does not arise.
UPI transactions are free
So, the relief at the moment is that there will be no tax on UPI transactions above Rs 2000. The government has stopped the rumours that were spreading and has made it clear that steps will not be taken back in the direction of Digital India. Now you can scan the QR code without any worry. UPI is still free and will remain so in future too.
UPI has become the new trend of transactions
There was a time when people used to stand in line at ATMs. They used to carry cash. But now that era is changing rapidly. In March 2025, UPI transactions worth Rs 24.77 lakh crore were done in a single month. Statistics show that people now consider digital payments more secure, faster and reliable. The focus of the government is also to make the country’s economy digital and reduce dependence on cash.
