New Delhi, April 18 -- The government on Friday firmly denied reports suggesting it plans to impose Goods and Services Tax (GST) on Unified Payments Interface (UPI) transactions exceeding Rs.2,000, describing such claims as "false, misleading, and baseless."

"There is no such proposal under consideration," the government clarified in an official press statement.

Currently, UPI payments made to merchants do not carry any additional charges like GST. This is because the Merchant Discount Rate (MDR) - a standard fee on digital transactions - was scrapped for UPI and RuPay transactions back in January 2020. Since there's no MDR being applied, the question of GST does not arise.

Disbursements under the scheme highlight the government's comm...