No
GST on UPI Transactions Above 2,000 – Government Clarifies
There’s been some confusion online, but the government has officially confirmed that no GST is charged on UPI payments, even if the amount is more than Rs. 2,000.
No Extra Tax or Hidden Charges
The Ministry of Finance has made it
clear: all those rumors about GST being added to UPI transactions are
completely false and misleading. You won’t be charged any tax just
because you’re sending or receiving money via UPI.
Why No GST?
Earlier, there used to be a small fee called the Merchant Discount Rate (MDR) on some digital payments. But in January 2020, the government removed MDR on UPI payments made to merchants (P2M). Since there’s no MDR, there's also no GST on these transactions.
Govt Is Supporting Digital Payments
To encourage digital payments and
help small businesses, the government is even running a UPI Incentive Scheme.
This means they’re actively promoting digital transactions – not taxing them.
UPI Use Is Growing Fast!
UPI is booming in India! The total
value of UPI transactions went from Rs. 21.3 lakh crore in 2019-20 to a massive Rs. 260.56 lakh crore in 2024-25. And payments made to merchants alone (P2M) have
crossed Rs.59 lakh crore.
--------------------------------------------------------------------------------------------------------------------------------------
UPI Not Working Today?
There was a major disruption of UPI (Unified Payments Interface) services throughout India today, April 12, 2025.
What
Happened?
Users started complaining about UPI transactions at approximately 11:26 AM IST, and the volume of complaints peaked soon after. Along with certain banking apps, the interruption impacted popular payment networks including Google Pay, PhonePe, and Paytm.
Official
Response
The UPI infrastructure is managed by the National Payments Corporation of India (NPCI), which admitted to the problem and said that sporadic technical issues are causing a drop in some transactions. They have apologized for the inconvenience and are actively working to find a solution.
When
Will It Be Resolved?
NPCI has not yet specified a timeframe for the resolution. They have, however, stated that they are attempting to fix the problem and will keep people informed.
What
Can You Do?
• Try Again Later: If your transaction doesn't go through,
give it some time before trying again.
• Use Other Payment Methods: If cash or another payment method is available,
think about utilizing it.
• Remain Knowledgeable: For the most recent information, follow the NPCI's
official updates and those from your payment service providers.
This is the third significant UPI outage in as many months, underscoring the
mounting issues with India's quickly developing digital payment system.
You can keep an eye on outage tracking websites like Downdetector or follow
NPCI's official channels for real-time information.
