Centre Clarifies: No GST Planned on UPI Transactions Above ?2,000

New Delhi – The Central Government has confirmed that there is no plan to impose Goods and Services Tax (GST) on UPI transactions exceeding ?2,000.

Responding to concerns raised in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary stated, “There is no recommendation from the GST Council to levy GST on UPI transactions above ?2,000.”

The clarification came amid growing confusion, especially after traders in Karnataka received GST demand notices reportedly based on UPI transaction data.

Chaudhary emphasized that any changes to GST rates or exemptions are solely based on the recommendations of the GST Council.

Meanwhile, Union Minister for Food, Public Distribution and Consumer Affairs, Pralhad Joshi, addressed the issue, saying the GST notices sent to small traders in Karnataka were issued by the state government and not the Centre.

His comments followed Deputy Chief Minister D.K. Shivakumar’s denial of state involvement in the issuance of the notices. Joshi called Shivakumar’s remarks “utterly ridiculous.”

“It was Karnataka’s own commercial tax officials who sent out the GST notices to small traders. Now the state government is misleading people by denying any role. This is a clear case of evading responsibility,” Joshi said.

He further questioned, “If these notices were issued by the Central government, why haven’t traders in other states received them too? Why is this happening only in Karnataka?”

Joshi clarified that GST has two components: CGST (Central GST) and SGST (State GST). The notices in question were issued under SGST by Karnataka’s Commercial Tax Department.

With inputs from IANS