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💼 No GST on UPI Transactions Above ₹2000: Ministry of Finance Clarifies Government Responds to Misinformation The Ministry of Finance has officially debunked circulating claims about the imposition of Goods and Services Tax (GST) on UPI transactions exceeding ₹2,000 . In a public statement issued on Friday, the Ministry termed these reports as “completely false, misleading, and without any basis.” As of now, there is no proposal under consideration to levy GST on UPI (Unified Payments Interface) transactions above any threshold, including the ₹2,000 mark. Understanding the GST and MDR Framework The confusion seems to have arisen due to a lack of clarity around the Merchant Discount Rate (MDR) —a fee that was previously charged to merchants on digital transactions. To clarify: GST is levied only on MDR , not on the digital payment transaction itself. Since January 1, 2020 , as per a Gazette Notification dated December 30, 2019 , the Central Board of Direct Taxes (CBDT...