1. The Indian government is planning to impose GST on UPI transactions.
2. This tax would apply to payments made through UPI that are above ₹2,000.
3. The move is aimed at bringing high-value digital transactions under the tax system.
4. Small businesses, freelancers, and middle-class individuals who frequently use UPI for payments may be affected the most.
5. The proposal is still under discussion and has not been officially implemented yet.
Drawbacks of This Rule
1. Increased Financial Burden: People will have to pay extra tax on regular digital payments, making everyday spending more expensive.
2. Impact on Small Businesses: Local shopkeepers and small vendors relying on UPI may lose customers due to added costs.
3. Discourages Digital Payments: Taxing UPI can push people back to using cash, which goes against the goal of a cashless Digital India.
4. Affects Freelancers and Daily Earners: Many freelancers and gig workers use UPI for receiving payments. This rule could reduce their earnings.
5. Digital Divide May Widen: Instead of encouraging digital inclusion, the extra cost may discourage low-income users from using digital platforms.