GST on UPI payments exceeding Rs 2,000? Here is what you need to know

GST on UPI payments: The government is reviewing a proposal on Unified Payment Interface (UPI) to come under GST when transactions exceed Rs 2,000. According to several reports, UPI transactions above a certain limit may attract higher GST, which the government is currently reviewing. 

As per the revised proposal, digital payments made via UPI that cross Rs 2,000 in a single transaction may come under the GST structure, aiming to enhance tax compliance and bring more digital transactions into the formal economy. If this proposal is approved, an 18% GST service charge will be levied on these high-value transactions.

With GST now applicable to UPI payments exceeding Rs 2000, both peer-to-peer and merchant transactions may be brought under its scope. The proposed GST frameworks would be 18 percent. But still no official implementation date has been announced, the report said. 

In February 2025, the GST collections rose 9.1 percent to about Rs 1.84 lakh crore in India. As per the official data published on Saturday, March 1, the gross GST collections for the reviewed month were as follows: Rs 35,204 crore from central GST, Rs 43,704 crore from state GST, Rs 90,870 crore from integrated GST, and Rs 13,868 crore from compensation cess.