UpiImage Credit Source: Signcast Photo
The government has taken a big decision for the common man. The Finance Ministry made it clear in the Rajya Sabha that there is no proposal to impose GST on UPI transactions worth more than Rs 2000. This news is a matter of relief for those who use UPI for everyday transactions.
On July 22, during the monsoon session of Rajya Sabha, Minister of State for Finance Pankaj Chaudhary gave information about this. He said that the GST Council has not recommended to impose GST on UPI transactions. The GST Council is a constitutional institution, which includes representatives of the Center and State Center ruled. This council decides tax rates and exemption related to GST. Chaudhary also made it clear that there is no plan to impose GST on UPI payments.
Recently, GST demand notices were sent to about 6,000 traders in Karnataka based on the data of UPI transactions. Because of this, people were afraid that the government could tax UPI payments. But this statement of the government ended all the apprehensions. Now people can pay through UPI without any concern.
UPI has become the most popular method of digital payment in India today. From small transactions to big payments, people use it easily. It is cheap, fast and safe. This decision of the government will further promote Digital India. The common man will now not be worried about additional tax nor transaction limit. This step is beneficial not only for the common people, but also for small traders, who make their business easier through UPI.
