New Delhi, April 18 — The government has categorically denied reports suggesting that it is considering the imposition of Goods and Services Tax (GST) on Unified Payments Interface (UPI) transactions exceeding ₹2,000.
As per agency report, the Finance Ministry issued an official statement on Friday dismissing such reports as “completely false, misleading, and baseless.” It clarified that there is currently no proposal under consideration to levy GST on UPI payments above the said threshold.
The ministry emphasized that GST is only applicable to certain service charges, such as the Merchant Discount Rate (MDR), which are levied on specific types of digital transactions. However, MDR on UPI transactions between customers and merchants was removed by the Central Board of Direct Taxes (CBDT) in January 2020.
Given that there is no MDR currently applicable to UPI payments, no GST is levied on these transactions either, the ministry confirmed.
Highlighting the rapid growth in digital payments, the statement revealed that UPI transaction volumes have surged significantly—from ₹21.3 lakh crore in 2019–20 to ₹260.56 lakh crore by the end of March 2025.
Reiterating its stance, the ministry assured that the government remains committed to promoting digital payments through UPI and has no intention of implementing any policy that could hinder its adoption.
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