💸 GST on UPI Transactions Over ₹2,000? Here’s What You Need to Know

The Indian government is reportedly considering a new proposal that could affect how we use UPI (Unified Payments Interface) for daily transactions. As per media reports, UPI payments exceeding ₹2,000 might soon come under the Goods and Services Tax (GST) net.

📌 What’s the Proposal?

If the proposal is approved, digital payments done via UPI—whether peer-to-peer or merchant transactions—above ₹2,000 could attract 18% GST, which is the standard rate for most digital services in India.

This move is being reviewed to boost tax compliance and bring more high-value digital payments into the formal tax system.

🔍 Will It Affect Everyone?

Not immediately. As of now:

• The proposal is under review.

• No official date of implementation has been announced.

• It's not clear whether this GST would apply to all types of UPI transactions or just selected categories.

If passed, this could change how businesses and individuals handle large transactions through platforms like PhonePe, Google Pay, Paytm, and BHIM.

📊 Why This Move?

India's GST revenue has already shown growth, rising 9.1% in February 2025 to reach around ₹1.84 lakh crore. Here’s a quick breakdown:

• Central GST (CGST): ₹35,204 crore

• State GST (SGST): ₹43,704 crore

• Integrated GST (IGST): ₹90,870 crore

• Compensation Cess: ₹13,868 crore

Despite this, the government is exploring more ways to ensure high-value transactions are captured in the tax net.

💬 Final Thoughts

If implemented, this GST rule could impact both consumers and merchants, especially those dealing with higher-value UPI payments. For now, it's important to stay updated and be prepared for possible changes in the way we pay digitally.

We’ll keep you posted as more updates roll in. Stay tuned to Schezy.com for the latest in business, finance, and digital economy news!