No GST on UPI transactions above ₹2,000, clarifies Finance Ministry

The finance ministry on Friday issued a clarification rejecting rumours that it is considering levying GST on UPI transactions above ₹2,000, calling such claims “completely false, misleading and without any basis”.

“Currently, there is no such proposal before the government,” the finance ministry 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,” it added.