GUWAHATI: The central government is reviewing a proposal to impose Goods and Services Tax (GST) on Unified Payments Interface (UPI) transactions exceeding ₹2,000.
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According to reports, the move, if implemented, could bring high-value digital payments under the indirect tax framework. If the proposal receives approval, UPI payments above the ₹2,000 threshold may reportedly attract 18% GST — the standard rate applicable to most digital services.
The tax may be applicable to both peer-to-peer and merchant transactions, though no official statement has been issued regarding the final decision or timeline for implementation. The review process is said to be ongoing, with the government examining its possible impact on users and the digital payments ecosystem.
However, the National Payments Corporation of India (NPCI) has not commented on the reported development. The proposal has arrived amid a consistent rise in India’s digital transaction volume and growing dependence on UPI for everyday payments.