GST on UPI transactions: UPI transactions, becoming increasingly popular in the country, are proving to be a milestone towards promoting the government’s digital India campaign. Amid reports of recent GST on UPI, the Finance Ministry has clarified in the Rajya Sabha that no idea has been made to impose GST on transactions of more than 2000 rupees. During the monsoon session on July 22, 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 imposed on UPI transaction

Responding to a question of the government’s views about GST on transactions above two thousand rupees, Pankaj Chaudhary said that on the basis of GST Council’s recommendation, GST rates and exemption are decided. It is a constitutional body, which includes members of both the state and the center.

Significantly, the GST case on UPI transactions came to light when about 6000 GST notice has been issued to traders on the basis of data of UPI transactions in Karnataka.

GST notice in Karnataka stirred up

The organization of traders in Karnataka has threatened to strike against the GST notice sent on the basis of data of GST transactions. While the Income Tax officials have described it as the right step according to the law.

Speaking to the news agency PTI, Joint Commissioner of Commercial Tax, Meera Suresh Pandit said that when the transaction limit in the service sector crosses the limit of 20 lakhs and goods for goods, it becomes mandatory to register its business under the GST Act. Along with this, your turnover also has to be announced