GST Reforms Fuel Record Surge in UPI Transactions in October

New Delhi (The Uttam Hindu):India’s digital payment ecosystem witnessed a major surge in October, with UPI (Unified Payments Interface) recording billions of transactions, marking one of the highest figures to date. Experts attribute this spike to the recent GST reforms, which have encouraged more formal and transparent business transactions, especially among small and medium enterprises.

According to data released by the National Payments Corporation of India (NPCI), UPI processed over 14 billion transactions in October, with the total value crossing ₹25 lakh crore. This represents a sharp rise compared to previous months and highlights how digital payments have become the backbone of India’s financial system.

The government’s focus on simplifying GST compliance, real-time tax credit updates, and digitized invoicing systems has indirectly driven businesses toward seamless digital payment modes. With cleaner records and faster settlements, many traders and service providers now prefer UPI over traditional methods such as cash or cheques.

Economists also believe that UPI’s integration with GST systems has reduced the scope of tax evasion while improving the efficiency of financial reporting. The combination of tax transparency and technological ease has made it simpler for both consumers and merchants to transact digitally.

Moreover, the festive season contributed to this growth, as millions of Indians used UPI for shopping, food delivery, and travel bookings, adding further momentum to the digital economy.

Industry experts predict that if this trend continues, India’s UPI transaction volume may soon surpass all other payment modes combined, reinforcing the country’s position as the global leader in digital payments.