No plan to levy GST on UPI transactions over Rs 2,000: Centre

New Delhi: In a major relief for the public, the Centre revealed that there is no plan to levy goods and services tax (GST) on unified payments interface (UPI)-based transactions exceeding Rs 2,000.

Pankaj Chaudhary, Minister of State of Finance, said in the Rajya Sabha that "there is no recommendation of levying GST on UPI transactions of over Rs 2.000 from the GST Council”.

A few months ago, the Finance Ministry issued a statement, dismissing reports of government planning to levy GST on UPI payments exceeding Rs 2,000. 

In a statement, the ministry said, "There is no such proposal before the Government." 

Last day, Pankaj Chaudhary informed Parliament that GST rates and exemptions are determined based on the recommendations of the GST Council.

His statement came in response to concerns raised after traders in Karnataka reportedly received GST demand notices regarding UPI transactions.

Minister for Food, Public Distribution and Consumer Affairs, Pralhad Joshi, blamed the Karnataka government for issuing the GST notices to small-scale traders.

Responding to Deputy Chief Minister D.K. Shivakumar’s claim that the state has no role in issuing tax notices, Joshi said, “It is Karnataka’s commercial tax officials who issued the GST dues notices to small traders. And yet, the state government is now misleading the public by pretending it has no involvement. This is nothing but an attempt to shirk responsibility.”