UPI Payment Rules Changing from August 1: No GST, New Limits on GPay, PhonePe, Paytm Transactions

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UPI Payment Rules Changing from August 1: No GST, New Limits on GPay, PhonePe, Paytm Transactions

UPI Payment Rules Changing from August 1: No GST, New Limits on GPay, PhonePe, Paytm Transactions India’s Unified Payments Interface (UPI) has emerged as a global leader in digital transactions, surpassing even the likes of Visa in terms of usage. From small vendors to large retail chains, UPI has become an integral part of everyday payments across the country. As of August 1, significant changes are set to take effect that will impact users of popular platforms like Google Pay, PhonePe, and Paytm. Amid growing concerns on social media, rumors suggested that UPI transactions exceeding ₹2000 would be subject to GST. This misinformation led to confusion among merchants, with some opting to avoid UPI payments altogether. However, the government has officially clarified in the Rajya Sabha that there are no plans to impose GST on UPI transactions. The administration reaffirmed its commitment to promoting digital payments and dismissed the viral claims as baseless. Alongside this relief, the National Payments Corporation of India (NPCI) is introducing several operational changes to enhance system efficiency. Starting August 1, users will be limited to checking their account balance only 25 times per day. This move aims to reduce unnecessary server load and streamline backend processes. Auto payment services will also be restricted to specific time windows—between 10 AM to 1 PM and 5 PM to 9:30 PM—ensuring that such transactions occur during non-peak hours for better system performance. Additionally, users will be allowed to check the status of their UPI transactions only three times a day, with a mandatory gap of at least 90 seconds between each attempt. NPCI is also expected to introduce limits on chargeback requests, although further details are awaited. These changes reflect a strategic effort to optimize UPI infrastructure while maintaining user convenience and security. While some users may find the new rules slightly restrictive, they are designed to ensure smoother and more reliable digital payment experiences for everyone.



India’s Unified Payments Interface (UPI) has emerged as a global leader in digital transactions, surpassing even the likes of Visa in terms of usage. From small vendors to large retail chains, UPI has become an integral part of everyday payments across the country. As of August 1, significant changes are set to take effect that will impact users of popular platforms like Google Pay, PhonePe, and Paytm.

Amid growing concerns on social media, rumors suggested that UPI transactions exceeding ₹2000 would be subject to GST. This misinformation led to confusion among merchants, with some opting to avoid UPI payments altogether. However, the government has officially clarified in the Rajya Sabha that there are no plans to impose GST on UPI transactions. The administration reaffirmed its commitment to promoting digital payments and dismissed the viral claims as baseless.

Alongside this relief, the National Payments Corporation of India (NPCI) is introducing several operational changes to enhance system efficiency. Starting August 1, users will be limited to checking their account balance only 25 times per day. This move aims to reduce unnecessary server load and streamline backend processes. Auto payment services will also be restricted to specific time windows—between 10 AM to 1 PM and 5 PM to 9:30 PM—ensuring that such transactions occur during non-peak hours for better system performance.

Additionally, users will be allowed to check the status of their UPI transactions only three times a day, with a mandatory gap of at least 90 seconds between each attempt. NPCI is also expected to introduce limits on chargeback requests, although further details are awaited.

These changes reflect a strategic effort to optimize UPI infrastructure while maintaining user convenience and security. While some users may find the new rules slightly restrictive, they are designed to ensure smoother and more reliable digital payment experiences for everyone.

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