No GST on UPI Transactions Above ₹2000: Government Clears the Air
Big Update on UPI: There’s good news for users of Google Pay, PhonePe, Paytm, and other UPI apps — the government has confirmed that no GST will be charged on UPI payments over ₹2000.
Recent rumours had caused panic, with reports claiming that high-value UPI transactions might soon be taxed. But the Finance Ministry has called these reports completely false and baseless.
Why the Rumours Started
According to a report by Financial Express, MP Anil Kumar Yadav raised a question in the Rajya Sabha asking whether the government planned to impose GST on UPI payments above ₹2000. He also wanted to know if any public objections had been received.
In response, Minister of State for Finance Pankaj Chaudhary clarified that:
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No such tax is being considered.
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Any decision on GST is taken only by the GST Council.
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So far, the Council has not made any recommendation to tax UPI.
No Tax on UPI, No Matter the Amount
Big Update on UPI: The government made it clear that there is no GST on UPI transactions, whether it’s a payment between two individuals or from a person to a merchant — regardless of the amount.
So whether you’re transferring ₹100 or ₹10,000 via UPI, you won’t be taxed.
Government Backs Digital Payments
This clarification also shows the government’s support for digital payment platforms. UPI is one of India’s biggest success stories — fast, secure, and easy to use. It’s used everywhere now, from street vendors to e-commerce apps, and often comes with cashback and rewards too.
By keeping UPI tax-free, the government aims to further boost digital transactions and make cashless payments accessible for all.
Final Word
There is no GST on UPI payments above ₹2000 — or on any UPI payments at all. You can continue using Google Pay, PhonePe, Paytm, and other apps without any extra charges.
The government has put all rumours to rest, confirming its commitment to promoting UPI and other digital payment options across the country.
