The worth of UPI transaction elevated from Rs 21.3 lakh crore in 2019-20 to Rs 260.56 lakh crore by March 2025. The federal government reiterated its dedication to advertise digital funds by way of UPI.
Highlights
- The federal government reiterated its dedication to advertise digital funds by way of UPI.
- An incentive scheme for transactions to help low worth P2M funds is on.
- The plan helps merchants by reducing the transaction prices, encouraging digital adoption.
The Finance Ministry on Friday dismissed the claims stating that the federal government was contemplating imposing items and repair tax (GST) on the Unified Funds Interface (UPI) transactions of greater than Rs 2,000, and described them as “false, deceptive and unfounded”. The ministry clarified that no such proposal is into consideration. Presently, GST applies to charges comparable to service provider low cost charge (MDR) associated to funds made by way of particular tools solely. Nevertheless, a gazette notification issued by the Central Board of Direct Taxes on December 30, 2019 eliminated the MDR on the person-to-business (P2M) UPI transaction from January 2020.
- Since MDR is just not taken on UPI transactions, GST additionally doesn’t apply to them.
- The federal government reiterated its dedication to advertise digital funds by way of UPI.
- An incentive scheme for UPI transactions from 2021-22 is on with the target of supporting low-value P2M funds.
- This plan helps small merchants by encouraging the transaction value and adopting extra digital.
- Below this scheme, the allocation of the federal government has elevated by Rs 1,389 crore in FY 2021-22, Rs 2,210 crore in FY 2022-23 and Rs 3,631 crore in FY 2023-24.
- These initiatives underline the federal government’s deal with the enlargement of India’s digital funds infrastructure.
- In response to ACI Worldwide Report 2024, India processed 49 % of the worldwide real-time transaction in 2023, which exposes its dominance within the digital cost situation.
- The worth of UPI transaction elevated from Rs 21.3 lakh crore in 2019-20 to Rs 260.56 lakh crore by March 2025.
- The P2M transactions alone have been value Rs 59.3 lakh crore, which displays complete merchants and shopper confidence in UPI.
