No GST on UPI transactions exceeding Rs 2000, Center in Rajya Sabha

NEW DELHI: The union finance ministry has informed that GST will not be levied on UPI payments exceeding Rs 2,000. The Centre informed this in the Rajya Sabha. Minister of State for Finance Pankaj Chaudhary informed the House that the GST Council has not recommended levying GST on UPI transactions exceeding Rs 2,000. The minister added that the GST rates and exemptions are decided as per the recommendations of the GST Council, a constitutional body comprising selected members from the Centre, states and Union Territories.

The minister informed this in response to a question on whether there is any move to impose GST on UPI transactions exceeding Rs 2,000. This is in the backdrop of the Karnataka State Commercial Tax Department issuing notices to about 6,000 small traders. Following the notice, traders started boycotting UPI. The traders had ended their protest after Chief Minister Siddaramaiah announced that the notice to levy tax with retrospective effect would be withdrawn.