Govt not considering levying GST on UPI transactions above Rs 2,000: FinMin
New Delhi, Apr 18 (PTI): The government on Friday clarified that it is not mulling to levy GST on UPI transactions above Rs 2,000.
Clarifying on reports, which said that the government is considering levying Goods and Services Tax (GST) on UPI transactions over Rs 2,000, the finance ministry said they are completely false, misleading, and without any basis.
"Currently, there is no such proposal before the government," the ministry said in a statement.
GST is levied on charges, such as the Merchant Discount Rate (MDR), relating to payments made using certain instruments.
Effective January 2020, the Central Board of Direct Taxes (CBDT) has removed the MDR on person-to-merchant (P2M) 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, growing from Rs 21.3 lakh crore in FY 2019-20 to Rs 260.56 lakh crore by March 2025.
The ministry also said the government remains committed to promoting digital payments via UPI.
To support and sustain the growth of UPI, an incentive scheme has been operational from FY2021-22. This scheme specifically targets low-value UPI (P2M) transactions, benefiting small merchants by alleviating transaction costs and promoting wider participation and innovation in digital payments.
In 2023-24, the government paid Rs 3,631 crore under the scheme, up from Rs 2,210 crore in 2022-23.
"The total incentive payouts under this scheme over the years reflect the government's sustained commitment to promoting UPI-based digital payments," the ministry noted.
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Dense fog envelops Delhi-NCR; air quality remains 'very poor'
New Delhi (PTI): Dense fog enveloped large parts of Delhi-NCR on Thursday morning, significantly reducing visibility and disrupting traffic across the region.
According to the India Meteorological Department (IMD), dense fog conditions prevailed over the city based on the 6 am observation. Visibility at Palam Airport dropped sharply to 150 metres, while Safdarjung Airport reported visibility of 200 metres.
The dense fog affected road traffic in several areas, with vehicles seen moving slowly on major arterial roads and highways connecting Delhi with neighbouring cities, such as Gurugram, Ghaziabad and Noida. Morning commuters faced delays as low visibility prompted motorists to exercise caution.
According to the officials, the current visibility at Indira Gandhi International Airport, Palam is 100 metres. General visibility is expected to increase to 150 metres in the next 30 minutes and will gradually improve thereafter. No further reductions are expected.
Weather officials said foggy conditions are likely to persist during early mornings in the coming days as winter intensifies. The IMD has forecast dense fog on Thursday and Friday.
Meanwhile, air quality in the national capital remained in the 'very poor' category, with the air quality index (AQI) recorded at 358, according to the Central Pollution Control Board (CPCB).
On the weather front, the minimum temperature in the national capital settled at 9.0 degrees Celsius, which is 0.9 notches above the season's average. The maximum temperature is likely to hover around 23 degrees Celsius, the IMD said.
The relative humidity was recorded at 100 per cent at 8.30 am.
As per the CPCB classification, an AQI between zero and 50 is considered 'good', 51 to 100 'satisfactory', 101 to 200 'moderate', 201 to 300 'poor', 301 to 400 'very poor' and 401 to 500 'severe'.
