Claims that Government mulling 18% GST on UPI Payments Above Rs. 2,000 misleading:

Claims that Government mulling 18% GST on UPI Payments Above Rs. 2,000 misleading The Central Board of Indirect Taxes and Customs (CBIC)  took it's twitter handle to clarify that the claims that the Government is considering levying GST on UPI transactions over Rs. 2,000 are completely false, misleading, and without any basis. "Currently, there is no such proposal before the government." Said the Ministry in it's tweet. Ministry also said that "GST is levied on charges, such as the Merchant Discount Rate (MDR), relating to payments made using certain instruments. Effective January 2020, the CBDT has removed the MDR on Person-to-Merchant (P2M) UPI transactions through the Gazette Notification dated 30th December 2019. Since currently no MDR is charged on UPI transactions, there is consequently no GST applicable to these transactions." "The Government is committed to promoting digital payments via UPI." Added the Ministry.