28 July 2025 : In recent days, there had been growing speculation about GST being imposed on UPI transactions above ₹2000, which created confusion and concern among merchants and the general public. This discussion intensified especially after some shopkeepers in Karnataka received GST notices based on their UPI transaction data.
Now, the central government has made it clear that there is no such plan. Minister of State for Finance, Pankaj Chaudhary, informed the Rajya Sabha that GST rates and exemptions are based solely on the recommendations of the GST Council, and no such proposal has been received in this regard.
This statement from the government makes it clear that there will be no additional tax on transactions above ₹2000 made through UPI. This clarification comes at a time when digital payments are seeing rapid growth across the country.
The government also clarified that the notices sent in Karnataka were related not to the value of transactions, but to tax compliance. Hence, both merchants and customers can remain assured while making transactions via UPI.
Summary:
The Finance Ministry has clarified that the government has no plans to levy GST on UPI payments over ₹2,000, dismissing rumors as baseless.