New Delhi, April 18 -- The government on Friday clarified that it is not mulling to levy GST on UPI transactions above Rs.2,000.

Clarifying on reports, which said that the government is considering levying Goods and Services Tax (GST) on UPI transactions over Rs.2,000, the finance ministry said they are completely false, misleading, and without any basis.

"Currently, there is no such proposal before the government," the ministry said in a statement.

GST is levied on charges, such as the Merchant Discount Rate (MDR), relating to payments made using certain instruments.

Effective January 2020, the Central Board of Direct Taxes (CBDT) has removed the MDR on person-to-merchant (P2M) UPI transactions.

"Since currently no MDR is charged on...