Divya Delhi:  Despite allegations that the government is mulling GST on UPI transactions exceeding Rs 2,000, the Ministry of Finance clarified. The Ministry rejected these assertions as untrue, deceptive, and unfounded. No such plans are before the government, according to the Finance Ministry. GST is applied to Merchant Discount Rate (MDR) payments made with specific instruments. A December 30, 2019 Gazette Notification by the Central Board of Direct Taxes (CBDT) eliminated the Merchant Discount Rate (MDR) for P2M UPI transactions in January 2020. No MDR is levied on UPI transactions, hence no GST applies. The Finance Ministry said it will promote UPI-based digital payments. Since 2021-22, an Incentive Scheme has supported UPI expansion. This strategy reduces transaction costs for low-value UPI (P2M) transactions, helping small merchants and encouraging digital payment innovation.