The authorities are reportedly reviewing an offer to impose GST on UPI Payments exceeding ₹2,000. According to reports, UPI transactions above a certain threshold can also appeal to a higher GST, which the authorities are attempting to review.
Under the revised notion, digital payments made through UPI that go ₹2,000 in a single transaction may be delivered under the GST framework. The reason behind this is to improve tax compliance and bring extra digital transactions into the formal economic system. If accepted, an 18 percent GST, the standard fees for most digital services, might be levied on these high-value transactions.
GST on UPI Payments of over Rs 2000
According to reports, once GST is applied to UPI bills over ₹2,000, the peer-to-peer and merchant transactions should both be included. The proposed GST fee is in all around 18 %. However, no respectable implementation date has been introduced.
India’s GST collections rose 9.1 % to around ₹1.84 lakh crore in February 2025. According to reliable data released on Saturday, March 1, on a gross base, mop-up from the vital GST stood at ₹35,204 crore, state GST at ₹43,704 crore, incorporated GST on UPI Payments at ₹90,870 crore, and compensation cess at ₹13,868 crore in the month under overview.
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