Will GST be levied on UPI transactions exceeding Rs 2000? The government gave the answer.

The issue of GST on UPI transactions came to the fore when approximately 6,000 GST notices were issued to traders in Karnataka based on UPI transaction data.

GST On UPI Transactions: UPI transactions, which are becoming increasingly popular in the country, are proving to be a milestone in promoting the government's Digital India campaign. Recently, amid reports of GST being imposed on UPI, the Finance Ministry has clarified in the Rajya Sabha that there has been no consideration of imposing GST on transactions above Rs 2000. On July 22, during the monsoon session, Minister of State for Finance Pankaj Chaudhary said that it has not been recommended to impose GST on transactions above two thousand rupees.

GST will not be levied on UPI transactions

Responding to a question about the government's views on GST on transactions above Rs 2,000, Pankaj Chaudhary said that GST rates and exemptions are decided on the basis of the recommendation of the GST Council. It is a constitutional body, which includes members from both the state and the center.

It is worth noting that the matter of GST on UPI transactions came to the fore when about 6000 GST notices have been issued to traders in Karnataka on the basis of UPI transaction data.

Commotion in Karnataka due to GST notices

The traders' organization in Karnataka has threatened to take to the streets and go on strike against the GST notices sent on the basis of GST transaction data. While the Income Tax officials have called it the right step according to the law.

Joint Commissioner of Commercial Tax Meera Suresh Pandit, while talking to news agency PTI, said that when the transaction limit in the service sector exceeds Rs 20 lakh and the limit for goods exceeds Rs 40 lakh, then it becomes mandatory to register your business under the GST Act. Along with this, you also have to declare your turnover.