Government will not charge gst on UPI transactions of over Rs 2,000, WhatsApp

The central government has refused to impose Goods and Services Tax (GST) on transactions worth more than Rs 2,000 through Unified Payments Interface (UPI). Recently some media reports stated that GST may be imposed on transactions of more than Rs 2,000 from UPI. The government has described such reports as completely wrong and misleading.

It has been clarified in a notice that any such Proposal Not being considered. The government has reiterated its commitment to promote digital payments through UPI. India’s contribution to digital transactions in the world has increased to about 46 percent with UPI’s popularity increases rapidly. Recently, PWC report states that in the last 12 years, retail digital payments have increased by about 90 times. NPCI’s plan also includes increasing UPI features. In the second half of the previous year, the value of transactions was increased to Rs 198 lakh crore with the use of mobile phones. This is an increase of about 30 percent on a year-on-year basis. It has an increased stake of UPI transactions.

In the second half of the previous year, about 14.5 percent more than the amount spent through payments credit and debit cards from mobile. Transactions were about Rs 130 crore in transactions through UPI in payments from mobile. The strengthening of infrastructure associated with digital payments is a major reason behind this. UPI transactions are placed in two categories-Person-to-Person (P2P) and Person-to-CRINT (P2M). In the second half of the previous year, the average ticket size of all UPI transactions was about Rs 1,515.

In December last year, the total value of transactions through UPI was about Rs 23.25 lakh crore. In the previous month, this figure was about 21.55 lakh crore rupees. The average value of these transactions per day in December was around Rs 74,990 crore. In the previous month, the figure was about Rs 71,840 crore. NPCI recently extended the volume limit for these transactions for two years. Apart from this, it was allowed to provide UPI services for all users of WhatsApp.