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UPI Transactions: UPI usage is rapidly increasing in India and globally. For paying a vegetable vendor or shopping online most people now use UPI. After this there were reports claiming that transactions over Rs 2000 via UPI will be taxed. The government has now clarified its position and dismissed the claims entirely. Ministry On UPI According to a report in the Financial Express Rajya Sabha MP Anil Kumar Yadav had asked in Parliament whether the government was considering imposing GST on UPI transactions above Rs 2000. He also inquired whether the public had submitted any representation opposing this move. There will be no tax on UPI (Unified Payments Interface) transactions above Rs 2000 the Finance Ministry has confirmed. Addressing recent rumors the ministry dismissed the reports suggesting a possible GST (Goods and Services Tax) on UPI transactions for the transactions above Rs 2000 as completely false and baseless. Government’s Response In Parliament Responding to the question Minister of State for Finance Pankaj Chaudhary stated that decisions related to GST are made solely on the recommendations of the GST Council and so far no such recommendation has been made. The Revenue Department also affirmed that the GST Council is a constitutional body and any new tax can only be introduced based on its recommendations. As of now no GST is levied on any type of UPI transaction whether its person-to-person (P2P) or person-to-merchant (P2M) regardless of the transaction amount. The government affirmed its commitment to promoting digital payments through platforms like UPI which are popular due to their speed simplicity and cashback offers.