GSTN Expands Digital Payment Options: UPI Facility Available in 27 States and UTs

GSTN Expands Digital Payment Options: UPI Facility Available in 27 States and UTs

Issue: To simplify the process of making Goods and Services Tax (GST) payments for taxpayers, enhance compliance efficiency, and promote digital transactions, the GST Network (GSTN) has significantly expanded the availability of the Unified Payments Interface (UPI) facility across most states and Union Territories (UTs).

Facts:

• The GSTN processes all electronic tax payments (challans) made by taxpayers.
• Initially, UPI as a payment option was available in a limited number of states.
• The GSTN recently completed the technical integration necessary to roll out the UPI payment gateway across a large majority of states and UTs.

Decision:

The GSTN has announced the successful expansion of the Unified Payments Interface (UPI) payment facility, making it available to taxpayers in 27 States and Union Territories for the payment of their GST liabilities.

Key TakeDowns:

• UPI Accessibility: Taxpayers in the designated 27 states/UTs can now easily pay their GST dues (tax, interest, penalties, and fees) using any UPI-enabled mobile application.
• Enhanced Ease of Payment: The addition of UPI is a major step toward simplifying tax compliance, as it offers a quick, secure, and instant payment method 24/7, significantly reducing dependence on traditional banking channels like NetBanking or NEFT/RTGS.
• Digital Push: This move aligns with the government’s broader strategy to promote digital transactions and improve the efficiency of financial inclusion within the tax administration system.
• Compliance Improvement: By simplifying the payment process, the GSTN aims to reduce instances of delayed payments and non-compliance, thereby accelerating government revenue mop-up.