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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Salute extraordinary courage of armed forces behind 'Operation Sindhoor': CM Siddaramaiah
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Bengaluru (PTI): Karnataka Chief Minister Siddaramaiah on Wednesday saluted the armed forces for conducting missile strikes on Pakistan under 'Operation Sindoor', to avenge the Pahalgam terror attack in which 26 civilians were killed.
He said, terror has no place in our land, and India will respond with strength and unity.
In retaliation to the Pahalgam terror attack, Indian armed forces on early Wednesday carried out missile strikes on nine terror targets in Pakistan and Pakistan-Occupied Kashmir, including the Jaish-e-Mohammad stronghold of Bahawalpur and Lashkar-e-Taiba's base in Muridke.
"I salute the extraordinary courage of our armed forces behind Operation Sindhoor. Their heroic action reaffirms that India will never tolerate terror in any form," Siddaramaiah said in a post on 'X'.
Stating that the brutal attack in Pahalgam was not just on innocent lives, it was an assault on the dreams and spirit of India, he said, "Every effort of our brave soldiers is a pledge to bring justice to the victims, their families, and to every Indian who believes in peace and humanity."
"Karnataka joins the nation in expressing unwavering solidarity with our forces. We are proud of your valour, sacrifice, and unflinching commitment to protect our sovereignty," he added.
India's response came two weeks after the Pahalgam terror attack triggered widespread outrage in India and abroad.
