The Indian government has clarified that there are no plans to impose Goods and Services Tax (GST) on UPI (Unified Payments Interface) transactions exceeding ₹2,000. This statement comes amidst public concerns and media reports suggesting that such transactions might incur GST or other charges.
India currently leads the world in UPI payments, with billions of rupees being transacted daily. While the Reserve Bank of India (RBI) has not levied any charges on UPI payments to date, RBI Governor Sanjay Malhotra had previously indicated that the era of completely free digital transactions via UPI might not last forever, as the cost of maintaining the digital payment infrastructure needs to be borne by someone.
However, Union Minister Pankaj Chaudhary, addressing a question in the Rajya Sabha, explicitly confirmed the government’s stance: they have no intention of imposing GST on UPI transactions above ₹2,000. He further clarified that the GST Council, a constitutional body with members from the central government, states, and union territories, has not made any such recommendation. GST rates and exemptions are determined solely based on the Council’s recommendations.
The article also briefly mentions the government’s financial objectives, including aiming to achieve the budget estimate target for 2025-26, with a projected fiscal deficit of approximately ₹15.69 lakh crore, or 4.4% of GDP. Regarding government bank employees, the article notes a slight decrease in numbers due to retirements and resignations, but also highlights significant recruitment efforts in recent years and ongoing hiring for the 2025-26 financial year. Sources
