UPI GST: The government is thinking about putting GST on UPI payments that are more than ₹2,000. They’re checking if this is something they should do, based on what the news is saying.
So, the new idea is that if you pay more than ₹2,000 through UPI at one time, you might have to pay GST on it. The government wants to do this to make sure more digital payments are officially recorded and taxed. If this happens, you could end up paying an extra 18% GST on these bigger UPI payments, which is the usual tax for online services.
Reports suggest that if UPI payments over ₹2,000 get GST, it could cover both person-to-person and business payments. The GST rate is expected to be around 18%. There’s no official date for this to start yet.
In February 2025, India collected about ₹1.84 lakh crore in GST, which is a 9.1% increase. The official figures released on March 1st show that this total includes ₹35,204 crore for the central government, ₹43,704 crore for the state governments, ₹90,870 crore from inter-state sales, and ₹13,868 crore as a special tax.
UPI and GST: What the Experts Say You Need to Know?
UPI is now the favorite way for millions of Indians to pay because it’s free and super fast. However, recently there’s been a lot of confusion spreading on social media about whether UPI payments will now have an 18% GST added to them. Let’s find out the real story and get some clarity from people who know about this stuff.
Is There Really an 18% GST on UPI Over ₹2,000?
Many reports claimed the government was planning to put an 18% GST on UPI payments, particularly those over ₹2,000. This news made everyday users and small business owners, who depend on UPI a lot, quite concerned.
What Experts Say?
Basically, Anand K Rathi from MIRA Money cleared things up. He said that GST isn’t going to be on the ₹2,000 you send through UPI. What could happen is that if apps like PhonePe, Paytm, or Google Pay start charging a little extra for using them (a service fee), then the 18% GST would only be on that small extra charge. So, if the fee is ₹1, the GST is on that ₹1, not the ₹2,000.
UPI GST: How Will It Affect You?
UPI is mostly free now, especially for person-to-person payments and small shops. Fees are rare, usually for big business transactions or heavy usage. However, Finkeda’s Manish Kumar Goyal warned that charging for regular UPI could hurt India’s digital growth, especially in rural areas where UPI is catching on fast.
Government Continues Digital Initiatives
India is becoming more and more cashless, and UPI is a huge success story for digital payments globally, handling tons of transactions. In March 2025, UPI saw over ₹24.77 lakh crore in transactions. The government has been a big supporter of digital payments, and there’s no official word that they’re going to put a direct GST on UPI for users.
