UPI Transactions: There will be no tax on UPI (Unified Payments Interface) transactions of more than Rs 2,000. The Finance Ministry has called the news of imposing GST (Goods and Services Tax) on transactions above Rs 2,000 fake. The ministry said that the reports of imposing GST are completely false and baseless.
UPI Transactions: UPI is making waves in many countries of the world including India. Transactions through UPI are increasing rapidly in the country. Be it paying the vegetable vendor or making payment for online shopping, most people now use UPI. Meanwhile, news came that tax will be levied on transactions of more than Rs 2000 through UPI. The government has clarified everything on this. The government has said that there is no such idea of imposing tax. This news is completely false and baseless. The ministry said that these reports are false and the government is committed to promoting digital payments through UPI.
According to the news published in Financial Express, Rajya Sabha MP Anil Kumar Yadav asked the government in the House whether it is planning to impose GST on UPI transactions above Rs 2,000? Along with this, he also asked whether the government has received any representation from the general public opposing any such plan?
Government’s reply in Parliament
Responding to this question, Minister of State for Finance Pankaj Chaudhary said that decisions related to GST are taken only on the basis of the recommendations of the GST Council. No such recommendation has come from the council so far. The Revenue Department says that the GST Council is a constitutional body. Tax rates and exemptions are decided on the recommendations of this council. In such a situation, no new tax can be implemented until the council makes any recommendation.
Let us tell you that at this time GST is not applicable on any type of UPI transaction, neither person to person (P2P) nor person to merchant (P2M), no matter what the amount of the transaction is. UPI has been liked by the public due to its fast, easy and cashback features.
What is UPI
Let us tell you that UPI is a real time payment system. For digital payment, a facility like UPI allows you to transfer money easily from home. For this, you need UPI supporting apps like Paytm, PhonePe, Bhim, GooglePay etc. The special thing is that UPI gives you the facility to transfer money even if you have only one information like scanner, mobile number, UPI ID. There is no need to give bank details in this, the work is done with just one UPI ID.
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