The government is reportedly considering a proposal to levy Goods and Services Tax (GST) on high-value UPI transactions exceeding ₹2,000. According to media reports, digital payments above this limit could be subject to an 18% GST—the standard rate applied to most digital services.
If the proposal gets approved, both peer-to-peer and merchant UPI transactions exceeding ₹2,000 could come under the ambit of GST. However, there has been no official confirmation from the government so far.
CPCB Recruitment 2025: Over 60 Vacancies, Salary Up To Rs 1,77,500
Interestingly, just last month, the Union Cabinet, chaired by Prime Minister Narendra Modi, sanctioned a ₹1,500-crore incentive scheme aimed at encouraging low-value BHIM-UPI person-to-merchant (P2M) transactions by small merchants. Under this scheme, all P2M transactions up to ₹2,000 will be eligible for zero merchant discount rate (MDR) and will receive an incentive of 0.15%.
This initiative will be in effect for one year, from April 1, 2024, to March 31, 2025.
Meanwhile, GST collections saw robust growth in March 2025, with gross revenue rising 9.9% year-on-year to over ₹1.96 lakh crore—marking the second-highest collection ever. GST from domestic transactions climbed 8.8% to ₹1.49 lakh crore, while revenue from imported goods surged by 13.56% to ₹46,919 crore.
Read the latest and breaking Hindi and English news on WWW.THEINSIGHTTODAY.COM. Get unbiased, reliable, and fast updates on India and the world. Explore news from politics, sports, Bollywood, business, cities, lifestyle, astrology, spirituality, jobs, and more. Stay informed anytime, anywhere by downloading The Insight Today mobile app now!