Currently, there is a claim on social media that GST will be imposed on transactions above Rs 2000 through UPI. However, on Friday, the Finance Ministry has clarified this. The Ministry said that the government is considering imposing GST on transactions above Rs 2000 but this is all false. These are all rumors. No such proposal has come to light.
The government has abolished the MDR i.e. Merchant Discount Rate (MDR) on digital payments from January 2020 and no GST is levied on it. The government also explained how digital payments are being continuously promoted through UPI. To make UPI payments easier for small shopkeepers and businessmen, special schemes are being implemented since 2021.
Through this scheme, rewards are given to service providers to offset transaction costs and encourage more people to use UPI. The government has said that there has been a huge increase in digital payments through UPI in India. According to a report by ACI Worldwide, 49 percent of global digital payments took place in India in 2023. In 2019-20, transactions in Uttar Pradesh were worth Rs 21.3 lakh crore, which has increased fivefold in the last five years. It has increased to Rs 260 crore in March 2025. Payments worth Rs 59.3 lakh crore were made to merchants alone, which shows the growing trust of consumers in digital payments.