No GST Notices on UPI Transactions, Clarifies Finance Minister
Union Finance Minister Nirmala Sitharaman has clarified in a written reply to the Lok Sabha that Central GST authorities have not issued any GST notices based on UPI transactions.
Finance Ministerโs clarification: โCentral GST authorities have not issued any notices based on UPI transactions.โ
The clarification follows reports from Karnataka where some small traders and street vendors said they received high GST notices based on digital footprints such as UPI transactions. These were issued by state GST field offices, not by Central GST authorities.
Sharp rise in GST evasion detection (Karnataka)
Central GST officers in Karnataka reported a significant jump in detected cases and values in FY25 compared with previous years.
| Financial Year | Cases Detected | GST Evasion Detected (Rs.) | Arrests | Voluntary Payments (Rs.) |
|---|---|---|---|---|
| FY23 | 959 | Rs. 25,839 crore | 2 | Rs. 1,705 crore |
| FY24 | 925 | Rs. 7,202 crore | 2 | Rs. 1.197 crore |
| FY25 | 1,254 | Rs. 39,577 crore | 9 | Rs. 1,623 crore |
Note: Figures reflect actions by Central GST authorities in Karnataka. UPI-based notices reported last month pertained to state GST field offices, not Central GST.

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