GST on UPI Payments Over Rs 2,000 coming soon? FinMin Clarifies

Amid growing public chatter around possible taxation on digital payments, the government has put to rest rumours of any upcoming levy on high-value UPI transactions.

Responding to a question in the Rajya Sabha on Tuesday, Minister of State for Finance Pankaj Chaudhary said there is no proposal to impose Goods and Services Tax (GST) on Unified Payments Interface (UPI) transactions exceeding Rs 2,000. 

He further clarified that the GST Council—the constitutional body responsible for decisions on tax rates and exemptions—has made no such recommendation.

“As informed by Department of Revenue, GST rates and exemptions are decided on the basis of recommendations of the GST Council, which is a constitutional body comprising of members from both the Centre and States/UTs. There is no such recommendation from the GST Council,” said Chaudhary in the parliament. 

The clarification came in response to a question raised by MP Anil Kumar Yadav Mandadi, who sought to know whether the Centre was considering such a move, and whether it had received public objections on the matter.

Also Read: FACT CHECK: Is Govt Planning to Impose 18% GST On UPI Transactions Over Rs 2,000? Here's The Truth | Republic World

Social Media buzz on GST

In recent weeks, speculation about GST being levied on UPI payments over Rs 2,000 had gained traction online, sparking concerns about the potential burden on everyday digital users. The Finance Ministry’s response suggests that while the topic may have caused concern, there has been no formal move or policy shift from the government or the GST Council.

Chaudhary reiterated that any changes to GST structure must originate from the GST Council, which includes representatives from both the Centre and the states. His remarks effectively rule out any immediate plans to tax UPI transactions, regardless of the amount.

What This Means for Users 

With the government now issuing a formal clarification in Parliament, users can be assured that no GST will be levied on UPI transactions above Rs 2,000. For the moment, the platform remains as it was: free of additional tax burdens, irrespective of transaction size.