In an official statement issued on Friday by the Press Information Bureau (PIB), the government called such claims “false, misleading, and without any basis.”
“The claims that the Government is considering levying Goods and Services Tax (GST) on UPI transactions over Rs 2,000 are completely false, misleading, and without any basis. Currently, there is no such proposal before the Government,” the statement clarified, reassuring users and merchants alike.
“The government remains committed to promoting digital payments via UPI,” it further said.
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 through the Gazette Notification dated 30th December 2019.Since currently no MDR is charged on UPI transactions, there is consequently no GST applicable to these transactions.According to the ACI Worldwide Report 2024, India accounted for 49% of global real-time transactions in 2023, reaffirming its position as a global leader in digital payments innovation.
Content Source: economictimes.indiatimes.com