UPI Payments / Now GST will not be levied on UPI payments, the government made a big announcement

The government has clarified that there will be no GST on UPI transactions of more than Rs 2000. Minister of State for Finance Pankaj Chaudhary told the Rajya Sabha that there is no such proposal. This decision is a relief for the common people and small traders and will promote digital payments.

UPI Payments: The government has taken an important step to promote digital payments. The Finance Ministry clarified in the Rajya Sabha that there is no proposal to impose GST on UPI transactions above Rs 2000. This news has brought a sigh of relief to millions of people who use UPI for everyday transactions.

Statement of Minister of State for Finance in Rajya Sabha

On July 22, 2025, during the monsoon session of the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary clarified the situation on this issue. He said that the GST Council has not made any recommendation to impose GST on UPI transactions. The GST Council, which consists of representatives of the Center and the states, takes decisions related to tax rates and exemptions. Chaudhary also added that there is no plan to impose GST on UPI payments, which has brought great relief to the common man and traders.

Confusion arising from notice in Karnataka

Recently, GST demand notices were sent to about 6,000 traders in Karnataka based on the data of UPI transactions. This created fear among the people that the government might impose tax on UPI payments. Due to this, many merchants in cities like Bengaluru and Delhi were reluctant to accept UPI payments. However, the latest statement of the government has completely eliminated these apprehensions. Now people can use UPI without any worry.

UPI: The basis of Digital India

UPI has become the most popular and trusted mode of digital payment in India today. From small transactions to large payments, it is fast, secure and economical. From grocery stores to online shopping, UPI has made its place in every sector. The number of UPI transactions crossed 100 billion in 2024, which shows the success of Digital India.

Beneficial for common man and traders

This decision of the government is beneficial not only for the common people but also for small and medium traders. UPI has helped small traders to digitize their business, increasing their reach and income. With the fear of GST being over, merchants can now accept UPI payments without any fear. This step will further strengthen the digital economy.

Digital India will get a boost

The decision not to impose GST on UPI will give further impetus to the Digital India mission. This step promotes a cashless economy as well as encourages transparency and convenience. Experts believe that this decision will further increase the use of UPI, which will further strengthen India's digital economy.