GST Exemptions: Banking Services, RuPay & BHIM-UPI Incentives Non-Taxable, Entry 34 Promotes Digital Payments

Exemptions in the banking and financial sector under GST include services related to deposits, loans, and advances represented by interest or discount, excluding credit card services, and interbank foreign currency transactions. Exemption Entry 34 specifies that transactions up to 2000 through cards are exempt to promote digital payments. Incentives paid by the government to acquiring banks for promoting RuPay and BHIM-UPI transactions are considered subsidies and are not taxable. These incentives, shared among stakeholders like issuer banks and payment service providers, remain non-taxable as long as distributed according to guidelines set by the National Payments Corporation of India.

---

---

---