No GST on UPI transactions above ₹2,000: Finance Ministry
What's the story
The Ministry of Finance has confirmed that there are no plans to impose Goods and Services Tax (GST) on Unified Payments Interface (UPI) transactions over ₹2,000. Pankaj Chaudhary, the Minister of State for Finance, made the announcement during a recent Rajya Sabha session. "There is no recommendation of levying GST on UPI transactions of over ₹2,000 from the GST Council," he said.
Tax determination
Who decides GST rates and exemptions?
Chaudhary clarified that the GST Council has not proposed any such tax on these digital transactions. In response to a query, the minister informed the House that GST rates and exemptions are determined based on the recommendations of the GST Council. This constitutional body comprises members from both the central government and state/union territory administrations.
Information
6,000 GST notices sent to Karnataka traders over UPI data
The latest announcement follows the issuance of nearly 6,000 GST demand notices to traders in Karnataka based on UPI transaction data. Amid growing concerns, a senior tax official stated that the action was in accordance with the law.