UPI Transaction: There is a big news for UPI users. For some time now, there has been a lot of discussion about imposing GST on UPI transactions of more than Rs 2000. This news has surprised many UPI users including individual users and small businessmen. Now the government has issued a clarification regarding this. The ministry has clarified that such claims are completely false, misleading and baseless. The government has no such plans.

For some days, it was being said on social media that the government is planning to impose GST on UPI transactions of more than Rs 2000. After discussion on social media, the Central Board of Direct Taxes and Customs clarified the government’s stand on imposing GST on digital payments on social media platform X.

The government has no such plan

CBIC said that UPI has revolutionized the way people in rural communities pay and receive money, eliminating the need for cash. The post said that the claims that the government is considering imposing GST on UPI transactions above Rs 2000 are completely false, misleading and baseless. The government has no such plan right now.

Government supporting UPI

The government is not taxing UPI but promoting it. Contrary to false claims, the government is actively promoting digital payments, especially low-value UPI transactions. To support this, the UPI Incentive Scheme has been implemented from FY 2021-22. Incentives given for FY 2021-22: Rs 1,389 crore, FY 2022-23: Rs 2,210 crore and FY 2023-24: Rs 3,631 crore. These payments help cover transaction costs for merchants, thereby promoting wider acceptance and innovation in digital payments.