No GST on UPI Transactions Over Rs 2,000, Clarifies Government
21 Apr 2025
1 Min Read
CW Team
The Government has firmly dismissed claims that it is considering levying Goods and Services Tax (GST) on UPI transactions exceeding Rs 2,000, calling them completely false and misleading. The Ministry clarified that no such proposal is under consideration.
GST, it stated, is only applicable to specific charges like the Merchant Discount Rate (MDR). However, since January 2020, MDR has been eliminated for Person-to-Merchant (P2M) UPI transactions, as per a CBDT Gazette Notification dated 30th December 2019. As no MDR is charged, no GST is applicable on such transactions.
Reiterating its commitment to digital payments, the Government highlighted the UPI Incentive Scheme, operational since FY 2021-22, aimed at encouraging small-value P2M transactions and supporting small merchants.
Incentive allocations over the years:
鈥� FY 2021-22: Rs 13.89 billion
鈥� FY 2022-23: Rs 22.10 billion
鈥� FY 2023-24: Rs 36.31 billion
These initiatives have strengthened India鈥檚 digital payments ecosystem. As per the ACI Worldwide Report 2024, India accounted for 49% of global real-time transactions in 2023. UPI transaction value surged from Rs 21.3 trillion in FY 2019-20 to Rs 260.56 trillion by March 2025, with P2M transactions alone reaching Rs 59.3 trillion, underscoring widespread adoption and trust.
(PIB)
The Government has firmly dismissed claims that it is considering levying Goods and Services Tax (GST) on UPI transactions exceeding Rs 2,000, calling them completely false and misleading. The Ministry clarified that no such proposal is under consideration. GST, it stated, is only applicable to specific charges like the Merchant Discount Rate (MDR). However, since January 2020, MDR has been eliminated for Person-to-Merchant (P2M) UPI transactions, as per a CBDT Gazette Notification dated 30th December 2019. As no MDR is charged, no GST is applicable on such transactions. Reiterating its commitment to digital payments, the Government highlighted the UPI Incentive Scheme, operational since FY 2021-22, aimed at encouraging small-value P2M transactions and supporting small merchants. Incentive allocations over the years: 鈥� FY 2021-22: Rs 13.89 billion 鈥� FY 2022-23: Rs 22.10 billion 鈥� FY 2023-24: Rs 36.31 billion These initiatives have strengthened India鈥檚 digital payments ecosystem. As per the ACI Worldwide Report 2024, India accounted for 49% of global real-time transactions in 2023. UPI transaction value surged from Rs 21.3 trillion in FY 2019-20 to Rs 260.56 trillion by March 2025, with P2M transactions alone reaching Rs 59.3 trillion, underscoring widespread adoption and trust. (PIB)
Next Story
3i Infotech Reports Rs 7.25 Bn Revenue for FY25
3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..
Next Story
Emerald Finance Joins Baya PTE to Boost SME Bill Discounting
Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..
Next Story
BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25
BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, 鈥淲e are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..
