“No such recommendation from the GST Council”: MoS Finance Pankaj Chaudhary at Lok Sabha confirms No GST on UPI Transactions
The question, tabled by Shri Anil Kumar Yadav Mandadi, asked whether the government was considering a proposal to impose GST on UPI transactions exceeding ₹2,000.
In a written reply to Rajya Sabha Unstarred Question No. 240 on Tuesday, 22 July 2025, Minister of State for Finance Shri Pankaj Chaudhary clarified that there has been no recommendation from the GST Council to levy GST on Unified Payments Interface (UPI) transactions, confirming that UPI transfers will continue to remain tax‑exempt under the current...
In a written reply to Rajya Sabha Unstarred Question No. 240 on Tuesday, 22 July 2025, Minister of State for Finance Shri Pankaj Chaudhary clarified that there has been no recommendation from the GST Council to levy GST on Unified Payments Interface (UPI) transactions, confirming that UPI transfers will continue to remain tax‑exempt under the current framework.
The question, tabled by Shri Anil Kumar Yadav Mandadi, asked whether the government was considering a proposal to impose GST on UPI transactions exceeding ₹2,000, sought details of any such proposal, inquired about public representations against the measure, and requested the decision taken by the government in this regard.
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Chaudhary reiterated that GST rates and exemptions are determined solely on the basis of recommendations of the GST Council-a constitutional body comprising representatives of both the Centre and States/UTs-and since no such recommendation has been made, there is no plan to introduce GST on UPI transactions of any value. This position, he noted, applies across all digital payment instruments covered under the UPI platform.
The clarification comes as UPI continues to solidify its dominance in India’s digital payments ecosystem. According to data released by the National Payments Corporation of India, 675 banks were live on UPI in June 2025, processing 18.39 billion transactions worth ₹24.03 lakh crore in the month-up from 17.89 billion transactions valued at ₹23.95 lakh crore in April 2025. A recent press note from the Press Information Bureau underscored that UPI handled over ₹24.03 lakh crore across 18.39 billion transactions in June alone, reflecting year‑on‑year growth of 32 percent in volume.
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UPI’s share of India’s retail digital payment volumes is estimated at around 85 percent, highlighting its central role in everyday commerce.
Industry stakeholders welcomed the affirmation, observing that any GST imposition on peer‑to‑peer digital transfers could have disproportionately affected small merchants and low‑income consumers who rely on cost‑efficient UPI payments. They urged policymakers to maintain the exemption as part of a broader effort to deepen financial inclusion and support India’s transition to a digital economy.
Looking ahead, the GST Council’s upcoming meetings will be closely watched for any discussion on the broader tax treatment of digital payment platforms, including potential proposals for nominal merchant‑level fees or enhanced compliance mechanisms-measures aimed at ensuring the long‑term sustainability of the UPI ecosystem without shifting the burden onto end users.
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