There has been a lot of discussion recently about issues with UPI transactions, including outages and rumors regarding potential taxes on higher-value transactions. A claim circulated widely that the central government was planning to impose an 18% GST on UPI transactions exceeding ₹2,000, creating anxiety among the public.
However, the Ministry of Finance has dismissed these rumors, calling them completely false and baseless. They clarified that there is no such proposal under consideration. Officials also criticized the spread of misinformation, emphasizing that these fake claims create unnecessary panic among citizens. Unfortunately, there is currently no central agency equipped to take legal action against those spreading such fake news.
To further support the growth and accessibility of UPI payments, the government has been running an Incentive Scheme since the 2021–22 fiscal year. This program focuses specifically on small-value UPI transactions, aimed at reducing transaction costs for small merchants. The initiative encourages more digital payments and helps in innovation in the sector.