GST on UPI transactions above Rs 2,000: Government issues clarification

Government has issued a clarification on the speculations doing rounds that GST will be applicable on UPI transactions above Rs 2,000. In a PIB release, the ministry of finance said that 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 ministry of finance release said that GST is levied on charges, such as the Merchant Discount Rate (MDR), relating to payments made using certain instruments.