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UPI Transaction :UPI has changed the world of payment in digital India. From grocery store to online shopping, every small and big transactions are now being done through UPI. But recently a news disturbed users. Some media reports claimed that the UPI transaction of more than Rs 2,000 will now be imposed GST.

This news created a stir from social media to general conversation. However, on 18 April 2025, the Finance Ministry put a stop to the rumor and made it clear that the claim was completely wrong. Let us understand this whole matter in detail and know what the government said.

Market of rumor

In the last few days, some media reports said that the government is planning to impose GST on transactions of more than Rs 2,000 through UPI. According to a report by Motilal Banka, the aim of this step was said to further promote digital transactions. This news has created restlessness among UPI users, because millions of people in India use UPI daily. People were worried about the fact that if GST came into force, small transactions can also be expensive. This news also became increasingly viral on social media, which further increased the concern of the people.

Government clarification

On 18 April 2025, the Finance Ministry dismissed these claims outright. The ministry said in its official statement that the government has no proposal to impose GST on UPI transactions worth more than Rs 2,000. This claim is completely false, misleading and baseless.

The ministry made it clear that GST applies only to certain fees, such as merchant discount rate (MDR). But the MDR has been removed on the person-to-business (P2M) UPI transaction under the Central Direct Tax Board (CBDT) notification, implemented from January 2020. This means that there will be no additional fee or tax on UPI transactions for common users.

News of relief for users

This explanation of the Finance Ministry has given great relief to UPI users. In India, UPI has not only made payment easier, but has also made digital transactions economical for small traders and common people. If any such tax was applied, it could have shocked Digital India's dream. The government's statement not only calms rumors, but also shows that it is committed to promoting digital transactions.

Beware of rumors

This incident once again proved that social media and some irresponsible news can spread confusion among the people. Experts say that it is necessary to get information from official sources, such as government websites or reliable news portals, before believing in such reports. The Finance Ministry has also appealed to the people not to pay attention to misleading news and rely only on government statements.

Digital payment future

UPI has brought the digital economy to new heights in India. This is not only fast and safe, but the facility of free transactions has made it popular for every class. This explanation of the government assures that this quality of UPI will remain intact. If you also use UPI, then do transactions carefully, because both your money and trust are safe.