On 18 April, the Finance Ministry dismissed media reports outright that the government was considering imposing GST on UPI transactions worth more than ₹ 2,000. The Ministry made it clear that no such proposal is currently under consideration, calling it “completely false and misleading information”.
No MDR on UPI, so GST cannot be felt
The Finance Ministry said that a merchant discount rate (MDR) is not imposed on UPI transactions. Since no fee is charged, there is no question of implementing GST. The government had abolished MDR on Person-to-Celebration (P2M) UPI transactions from January 2020.
Government incentive to promote digital payment
The government also stated that it is actively trying to promote digital payment system. Under a special incentive scheme from 2021-22, financial support of ₹ 2,210 crore in FY 2022-23 and ₹ 3,631 crore in 2023-24. Its purpose is to promote small traders and low value transactions.
Record increase in UPI transactions
According to the Finance Ministry, UPI Transaction Value was ₹ 21.3 lakh crore in FY 2019-20, which has increased to ₹ 260.56 lakh crore by March 2025. According to the 2024 report by ACI Worldwide, India participated in the world’s 49% real -time digital transactions in 2023, leading India to a pioneer in the region.
There is a tremendous increase in GST collection
According to government data, the GST collection in March 2025 was ₹ 1.77 lakh crore, which is 7.3% more than the previous year. At the same time, in the financial year 2024-25, the total collection increased by 8.6% to ₹ 19.56 lakh crore. Net tax revenue from domestic sales gained 9.3% in March to ₹ 1.38 lakh crore.
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The post reports of installing GST on UPI baseless, Finance Ministry said ‘False publicity’ first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
