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No GST on UPI Transactions Above ₹2,000, Confirms Government in Parliament

Amid growing concerns and speculations around possible taxation on UPI (Unified Payments Interface) transactions, the Indian government has officially clarified its stand—there will be no GST on UPI payments above ₹2,000. The confirmation came straight from the Finance Ministry during the ongoing Monsoon Session of Parliament.

No GST Recommendation by GST Council

On July 22, 2025, while addressing the Rajya Sabha, Minister of State for Finance, Pankaj Chaudhary, clearly stated that the government has no plans to impose GST on UPI transactions over ₹2,000. Responding to a specific question, he added, “There is no recommendation from the GST Council to levy GST on UPI transactions exceeding ₹2,000.”

This statement puts to rest the swirling rumors that the government might be planning to tax high-value UPI transactions, which had sparked concern among users and digital payment stakeholders.

Government Focused on Fiscal Goals

In the same session, MoS Chaudhary also shed light on the country’s fiscal position. He asserted that the government is not anticipating any revenue shortfall and is on track to meet the budget targets for FY 2025-26.

The fiscal deficit for the year is projected at ₹15.69 lakh crore, amounting to 4.4% of India’s GDP. The assurance comes as a relief to taxpayers and economists alike, especially amidst global economic uncertainties.

Public Sector Banks Are Well-Staffed

Answering another query related to public sector banks (PSBs), Chaudhary shared some employment insights. As of March 31, 2025, 96% of employee positions across PSBs are filled, based on business requirements. The minor staffing gap is attributed to retirements and occasional resignations due to personal reasons.

He also informed Parliament that between FY 2020 and FY 2025, banks have hired 148,687 new employees. For FY 2025-26, the recruitment process for an additional 48,570 positions is currently underway, indicating a strong push towards improving workforce capacity in public banking.

Key Takeaways:

• ✅ No GST on UPI payments over ₹2,000 – Government clears the air.

• 🏛️ No GST Council recommendation exists for taxing UPI transactions.

• 📉 No revenue shortfall is expected for FY 2025-26.

• 📊 Fiscal deficit projected at ₹15.69 lakh crore or 4.4% of GDP.

• 🏦 96% staffing coverage in PSBs; active hiring continues.

Final Word

The Indian government’s assurance provides much-needed clarity and stability for millions who rely on UPI for everyday payments. As digital transactions continue to grow across the nation, the decision to keep UPI services tax-free reflects the government's commitment to promoting a cashless economy.

In parallel, fiscal discipline and proactive banking reforms indicate a steady course towards economic growth. For salaried individuals, business owners, and digital-first consumers, this update reaffirms that digital payments remain both accessible and affordable in India.