|
No GST on UPI transactions over Rs 2,000, clarifies
govt; terms rumors as baseless
The Ministry of Finance has
categorically denied recent rumors suggesting that it is
planning to impose Goods and Services Tax (GST) on
Unified Payments Interface (UPI) transactions exceeding
Rs 2,000.
In an official statement issued on Friday by
the Press Information Bureau (PIB), the government
called such claims “false, misleading, and without any
basis.
“The claims that the Government is
considering levying Goods and Services Tax (GST) on UPI
transactions over Rs 2,000 are completely false,
misleading, and without any basis. Currently, there is
no such proposal before the Government,” the statement
clarified, reassuring users and merchants alike.
"The government remains committed to
promoting digital payments via UPI," it further said.
GST is levied on charges, such as the
Merchant Discount Rate (MDR), relating to payments made
using certain instruments.
Effective January 2020, the Central
Board of Direct Taxes (CBDT) has removed the MDR on
Person-to-Merchant (P2M) UPI transactions through the
Gazette Notification dated 30th December
2019.
|