India denies UPI GST rumors
Analysis based on 11 articles · First reported Apr 18, 2025 · Last updated Apr 19, 2025
The clarification from the India — Ministry of Finance (India) is positive for the financial markets, particularly for companies involved in digital payments and e-commerce in India, as it removes uncertainty regarding potential taxation on Unified Payments Interface transactions. This reassurance is expected to sustain the rapid growth and adoption of Unified Payments Interface, benefiting small merchants and consumers.
The India — Ministry of Finance (India) has officially denied rumors circulating on social media that the government was planning to levy Goods and Services Tax (India) on Unified Payments Interface transactions exceeding Rs 2,000. The ministry stated that these claims are 'completely false, misleading, and without any basis' and that 'currently, there is no such proposal before the government.' It clarified that GST is levied on charges like the Merchant Discount Rate (MDR), but since the India — Central Board of Direct Taxes removed MDR on Person-to-Merchant Unified Payments Interface transactions in January 2020, no GST is applicable. The government reiterated its commitment to promoting digital payments through Unified Payments Interface, highlighting an incentive scheme that has been operational since FY2021-22 to support low-value Person-to-Merchant transactions and encourage wider adoption. Unified Payments Interface transaction values have seen exponential growth, reaching Rs 260.56 lakh crore by March 2025, with India accounting for 49% of global real-time transactions in 2023 according to ACI Worldwide.
Set up alerts, explore entity relationships, search across thousands of events, and build custom intelligence feeds.
Open Dashboard