2 weeks Ago
If the proposal gets the green light, both peer-to-peer and merchant UPI transactions above Rs 2,000 could fall under the GST ambit. The government is reportedly evaluating a proposal to impose goods and services tax (GST) on high-value UPI transactions exceeding Rs 2,000. As per media reports, digital payments that cross this threshold might attract an 18 per cent GST, the standard rate for most digital services.
If the proposal gets the green light, both peer-to-peer and merchant UPI transactions above Rs 2,000 could fall under the GST ambit. However, there has been no official confirmation on this yet. Meanwhile, last month, the Union Cabinet, headed by Prime Minister Narendra Modi, approved a Rs 1,500-crore incentive scheme to promote low-value BHIM-UPI P2M transactions for small merchants.
As per this scheme, all person-to-merchant (P2M) transactions for small merchants up to Rs 2,000 will be eligible for zero cost or MDR and an incentive at the rate of 0.15%. The scheme will be implemented for one year between April 1, 2024, and March 31, 2025.
In March 2025, Gross GST collection grew 9.9 per cent in March to over Rs 1.96 lakh crore – the second-highest mop-up ever.
GST revenue from domestic transactions rose 8.8 per cent to Rs 1.49 lakh crore, while revenue from imported goods was higher 13.
56 per cent to Rs 46,919 crore..
