India, April 18 -- The finance ministry has rejected the rumours of levy of goods and services tax (GST) on UPI transactions above INR 2,000.

"The claims that the government is considering levying GST on UPI transactions over INR 2,000 are completely false, misleading, and without any basis. Currently, there is no such proposal before the government," the ministry said in a statement.

Currently, GST is only applicable on charges like Merchant Discount Rate (MDR) for certain payment instruments.

"Since currently no MDR is charged on UPI transactions, there is consequently no GST applicable to these transactions," the statement added.

Notably, the Centre removed MDR on person-to-merchant (P2M) UPI transactions in January 2020, effective...