Government dismisses rumors, clarifies that UPI transactions above Rs 2,000 will not attract GST

Government Dismisses Rumors, Confirms No GST on UPI Transactions Above ₹2,000

The government has officially clarified that Unified Payments Interface (UPI) transactions above ₹2,000 will not be subject to Goods and Services Tax (GST), putting an end to widespread speculation and misinformation circulating on social media.  

Recent rumors suggested that the government was considering imposing a 1% GST on UPI payments exceeding ₹2,000, sparking concerns among digital payment users. However, the Ministry of Finance has firmly denied these claims, calling them "baseless and misleading."  

A senior official stated, "There is no such proposal under consideration. UPI transactions, irrespective of the amount, will not attract GST. The government is committed to promoting digital payments, not taxing them."

The clarification comes as a relief to millions of Indians who rely on UPI for daily transactions. Over the past few years, UPI has become the backbone of India’s digital economy, with record-breaking transaction volumes every month.  

Experts say the rumors may have stemmed from confusion over the existing Tax Deducted at Source (TDS) rule for large cash withdrawals, which is unrelated to UPI. The government has urged citizens to verify such claims through official channels before sharing them further.  

As digital payments continue to grow, authorities emphasize that no additional tax burden will be imposed on UPI users, ensuring seamless and cost-free transactions for all.