The buzz of change in India’s digital payment system UPI has intensified. According to media reports, the government is considering a proposal to impose 18% GST on UPI transactions above Rs 2,000. Its aim is to strengthen tax compliance and connect digital transactions with the formal economy. If this proposal is implemented, the nature of free and user-friendly UPI may change. Expressing concern, an X user wrote, “GST on UPI? It will be heavy on the pockets of small traders and common people.” The Finance Ministry has not yet confirmed the final decision, but discussions are in full swing. The proposed GST targets large value transactions, which may affect consumers’ attitude towards digital payments. Analysts estimate that the move will increase government revenue, but will burden small businesses and consumers with transaction costs. In 2024, UPI crossed the 1.5 billion monthly transactions mark, mostly consisting of small transactions. However, GST on large transactions may reduce the popularity of payment apps. Economists suggest that the government will have to strike a balance between consumer convenience and revenue. The market and consumers are eagerly waiting for the final decision.