NEW DELHI, Aug 8: The union government on Saturday clarified that transactions via UPI will remain free and attract no charges, after the passing of the Payment and Settlement Systems Act, 2007 in Lok Sabha earlier this week.

Earlier reports had suggested that the Bill would allow the government to permit banks and payment companies to charge fees on UPI and other digital payments in the future.

However, in a press release, the Centre has now stated that a vast majority of transactions would remain free of charge for customers as well as merchants. However, it said that nominal charges may apply on certain limited merchant transactions.

“Consumers making payments will not face any transaction charges,” the government said, adding that all person-to-person (P2P) transactions would continue free of charge. “As and when MDR charges are introduced, they will apply only to a limited set of merchant transactions, above a certain threshold, at a nominal rate, far lower than debit or credit card MDRs,” it added.

The merchant discount rate (MDR) is the fee charged on a digital/ card payment made to a merchant. The MDR has been zero for UPI transactions till now, meaning merchants do not generally pay a transaction fee for accepting UPI payments.

The government asserted that while a vast majority of payments will be free of charge, MDR, if introduced, would only be threshold based and “not blanketly levied to all.”

“Once the Parliament passes the Taxation and Other Laws (Amendment) Bill, 2026, which proposes to amend Section 10A of the Payment and Settlement Systems Act, 2007, the “UPI and Services Steering Committee” headed by NPCI will decide on the MDR, if any,” the government further stated.

The government further dismissed reports suggesting that “external pressure” might have been a contributing factor for the amendment to the Payment and Settlement Systems Act, calling them “misleading.”

“This is unfounded, completely false and misleading. If external pressure had been a factor, the government would not have introduced UPI in 2016 or made it free of charge for both merchants as well as citizens since January 2020 and ensured that it became the world’s largest real time interoperable payment system,” the Centre said.

It said that the amendment should be viewed in the context of the union government's “broader objective of ensuring that India's digital payment infrastructure remains sustainable, competitive, innovative and capable of serving the country's rapidly expanding digital economy."

Gross GST collections grow 15.4% to more than ₹2.11 lakh crore in July on higher imports, sales

NEW DELHI, Aug 1: Gross Goods and Services Tax (GST) collections grew 15.4% to more than ₹2.11 lakh crore in July on higher mop-up from sales and imports, reflecting sustained domestic consumption. Gross GST collections were ₹1.83 lakh crore in July 2025 and ₹1.95 lakh crore last month.

Tax collection from domestic transactions grew 10.1% to more than ₹1.44 lakh crore, while gross revenues from imports were up 29% to ₹66,511 crore.

Gross Central Goods and Services Tax (CGST) revenue during the month stood at ₹39,835 crore, while State GST (SGST) and Integrated GST (IGST) mop-up were ₹47,881 crore and more than ₹1.23 lakh crore, respectively.

Total refunds during July grew 13.1% to ₹29,968 crore. After adjusting refunds, net GST revenue stood at more than ₹1.81 lakh crore.

Indian Cabinet approves ₹84,084 crore for offshore exploration scheme ‘Samudra Manthan’

NEW DELHI, July 31: Seeking to provide a fillip to India’s offshore exploration, the Union Cabinet Friday approved an outlay of ₹84,084 crore to the Union Petroleum Ministry’s National Offshore Exploration Scheme, titled ‘Samudra Manthan’.

The corpus is up to be utilised until fiscal year 2030-31. The overall outlay is categorised into four key components. The most important of these relate to drilling 60 deepwater exploration wells for which the Cabinet has allocated ₹43,200 crore.

This is inclusive of the government of up to 50% of eligible drilling cost or ₹675 crore per well.

The other component relates to offshore data acquisition which carries an outlay of ₹28,534 crore.

Development of common offshore infrastructure hubs to facilitate commercialisation of discoveries which would be accounting for an outlay of ₹10,000 crore.

Finally, the establishment of oil and gas manufacturing and services zones – seeking to promote domestic manufacturing and localisation of critical equipment and services – tabulate an outlay of ₹2,000 crore.

Overall, the Union government’s flagship scheme for offshore exploration aims at catalysing reserves of more than 600 million metric tonnes of oil equivalent (MMTOE).

It envisages to “stimulate significant investments across the exploration and production value chain, creating long-term opportunities for industry, innovation and economic growth.”

Essentially, with hydrocarbon exploration being a capital-intensive activity with long gestation period but essential for a country’s domestic energy security, the scheme seeks to reorient growth into the realm (via offshore exploration) to overcome difficulties from ageing existing oil and gas fields.

India-UK FTA To Make All Indian Exports Duty-Free From July 15: Piyush Goyal

NEW DELHI, July 12: Union Commerce and Industry Minister Piyush Goyal on Sunday said the India-UK Free Trade Agreement (FTA) will allow all Indian exports to enter the UK duty-free from July 15, benefiting sectors such as agriculture, fisheries, MSMEs and manufacturing, according to reports.

Speaking to reporters, Goyal said the agreement goes beyond trade in goods and services by introducing a Double Contribution Convention (DCC), which exempts Indian professionals working in the UK for up to five years from contributing to the country's social security system.

"The India-UK trade agreement not only covers merchandise, goods and services but also benefits thousands of Indians working in the UK. From July 15, any item exported from India to the UK will attract zero import duty," he said.

The minister also mentioned that the pact would ease the financial burden on Indian professionals employed in Britain through the DCC provision.

"Earlier, nearly 25 per cent of their (Indian professionals') salaries used to go towards the UK government's social security contributions. Now, that amount will be deposited in their provident fund accounts in India, earning 8.25 per cent annual interest. It will remain tax-free and help secure their retirement savings," he said.

According to Goyal, the trade agreement is expected to open up fresh opportunities for Indian professionals while strengthening economic and commercial engagement between India and the UK.

He also credited Prime Minister Narendra Modi's leadership for helping conclude the negotiations.

The Union Commerce and Industry Minister also announced that he would embark on a four-country overseas visit along with a business delegation aimed at expanding India's trade and investment partnerships.

As part of the tour, Goyal will attend the India-European Union Trade and Technology Council meeting in Brussels on July 14 and 15. The discussions will focus on resolving pending trade issues, enhancing technology cooperation and advancing negotiations on the proposed India-EU Free Trade Agreement.

He said greater technology collaboration with European countries would support India's long-term growth while deepening economic ties with the region.

India-EU FTA: Legal Scrubbing To Conclude In 15-20 Days, Says Piyush Goyal

NEW DELHI, July 6: The legal scrubbing of the proposed India-European Union free trade agreement (FTA) is expected to be completed within the next 15-20 days, Commerce and Industry Minister Piyush Goyal said on Monday, indicating that the trade pact has entered its final stage before signing.

Speaking at the National Export Excellence Awards, Goyal said he had spoken to his European Union counterpart a day earlier and would travel to Spain, Belgium, including Brussels, and Finland next week to advance trade engagements.

"We are working to complete the legal scrubbing of the India-EU FTA in the next 15-20 days," Goyal said.

Highlighting the opportunities created by India's growing network of trade agreements, the minister urged the domestic leather industry to build globally recognised Indian brands rather than remain contract manufacturers.

"We should introduce Indian designer leather brands in the 38 developed economies with which India has free trade agreements," Goyal said, adding that preferential market access under these pacts can help Indian exporters scale up significantly.

Goyal expressed confidence that the leather sector could witness a sharp increase in overseas shipments over the coming years.

"I expect India's leather industry exports to rise threefold over the next five to seven years from the current level of about $4.5 billion," he said.

The proposed India-EU FTA is expected to deepen trade and investment ties between India and one of its largest trading partners by reducing tariffs, easing market access and strengthening economic cooperation across sectors.

Piyush Goyal: India-US Trade Pact 99 pc Done, 1 pc Left

NEW DELHI, July 2: Calling the India-US trade agreement a "very fair and equitable" deal, Union Commerce Minister Piyush Goyal narrowed down the final '1 per cent' hurdle that needs to be ironed out to finalise the pact. Goyal also noted that the only 'nightmarish' experience his team faced during negotiations was the time difference between New Delhi and Washington, asserting he has had a great working relationship with his US counterparts.

Negotiations for a comprehensive bilateral trade agreement (BTA) began in February 2025, with both sides recently finalising the framework for an interim agreement as they work to close out the remaining 1 per cent of the deal.

"It's a very fair, very equitable [deal]. It's a deal that gives us preferential access to the United States market, and free trade agreements are all about preferential access... For us, the primary factor in the free trade deal is to get a preference over all our competitors, our neighbours, the Southeast Asian countries, and that's the lens through which every country in the world has looked at it," he said while speaking at the next chapter in the India-Japan partnership.

Goyal noted that even the developed economies like the EU, UK, Switzerland, Japan, and South Korea have looked at it through the lens of relative benefits and advantages and competitiveness, "and that is that 1 per cent link," he said.

"After the IEEPA (International Economic Emergency Powers Act) tariffs were struck down by the Supreme Court, the United States has to find the correct mechanism, a legally tenable mechanism by which they can give us the comparative advantage over our competitors," he said.

He noted that all the different elements -- whether it's the concessions in different goods or breaking down non-tariff barriers-- have been largely finalised.

"Till they give us this competitive advantage, it's very difficult to enter into force any agreement, and that's a position that the US also appreciates and understands...That's the area on which they have to work, where the US has to work, and how they will give us a competitive advantage compared to our peers," he added.

When asked about any 'nightmare' he faced during negotiations, the minister said it was "a joyous and very learning experience."

"The only nightmare part of it is that the time difference is such that at times we have to stay awake at night, but you know I sleep very late. So for me, that was also not very difficult. My staff and my team may have had some difficulty as negotiations often went on till late in the evening," he said.

"I don't think there was any stress at any point in time. Throughout this period, both negotiating teams have had a very good working relationship. I have had fabulous relations with both my counterparts there," he added.

The proposed India-US trade agreement appears closer to completion than at any point since negotiations began, with senior officials from both governments signalling that only a handful of issues remain unresolved. The clearest update came from US Ambassador to India Sergio Gor, who said negotiations were nearing the finish line.

"Most of this deal is complete. There are a few items that remain from both sides, but it's in the last one or 2 per cent of that deal," Gor said.

"We're very close," he added, calling the agreement "a win-win situation" that would bring stability to businesses on both sides.

US lifts sanctions on four Indian companies linked to Russia-related measures

WASHINGTON, July 1: The United States department of the treasury has removed four Indian entities from its Specially Designated Nationals (SDN) List as part of its latest sanctions update.

The entities delisted are Hyderabad-based RRG Engineering Technologies Private Limited and Lokesh Machines Limited, Ahmedabad-based Galaxy Bearings Ltd, and Delhi-based Shaurya Aeronautics Private Limited.

The move comes nearly two years after the four companies featured in the sanctions list of the US' Office of Foreign Assets Control (OFAC). In 2024, OFAC had imposed sanctions on 21 Indian entities – including 19 companies and two individuals – under Executive Order 14024, which targets those accused of providing financial, material, technological or other support to the Russian government.

The Washington's action were part of the broader efforts to prevent the circumvention of sanctions imposed on Russia following its 2022 invasion of Ukraine.

Following the sanctions, the Indian government said it had engaged with Washington on the matter.

The ministry of external affairs had maintained that India is a "responsible member of the international community" and participates in key multilateral export control regimes, while regularly conducting outreach programmes to ensure Indian companies comply with export-control laws and do not violate domestic regulations.

The delistings were announced as part of a broader update to the SDN List, which also included the addition of several individuals and entities allegedly linked to drug trafficking networks in Mexico.

In a statement, the treasury's office of Foreign Assets Control (OFAC) said it had released its quarterly report on licensing activities carried out under the Trade Sanctions Reform and Export Enhancement Act (TSRA) for the period from January to March 2026.

Two of the four Indian entities removed from the sanctions list – Galaxy Bearings Limited and Lokesh Machines Limited – are publicly listed companies. Lokesh Machines counts several global manufacturers among its clients, including US-based John Deere and Cummins, Sweden's Volvo, and Japan's Honda and Suzuki.

Another delisted entity, RRG Engineering Technologies, has links to India's aviation sector. Its chairperson and managing director, GM Ganga Rao, served as an industry expert on the ministry of civil aviation's 2018 task force on fast-tracking unmanned aerial vehicle (UAV) technology.

GST Revenues up 14% in June 2026 but dependence on imports increased, domestic sales lagged

NEW DELHI, July 1: The government’s Goods and Services Tax (GST) revenue grew 13.9% to ₹1.95 lakh crore in June 2026, the highest growth rate in 13 months. However, the bulk of this growth came from imports, with the tax collected from domestic transactions growing far slower.

Further, as GST marked nine years of implementation on July 1, tax experts point to several aspects — such as input tax credits, dispute resolution, multiple registrations, and the inverted duty structure — as issues that still need to be addressed.

However, they do acknowledge that the system has been steadily improving over the years.

The data shows that GST revenue from domestic transactions grew 6.5% to about ₹1.35 lakh crore in June 2026. This made up 69% of the total GST revenue earned that month, down from the 74% share it held in June last year.

Revenue from imports, on the other hand, grew nearly 35% in June 2026 to ₹6 lakh crore. This marks the 16th consecutive month in which GST revenues from imports have grown in double digits, and the 10th straight month in which their growth has exceeded the growth in revenues from domestic transactions.

Cabinet clears Rs 14,115 crore road projects, including Dwarka tunnel in Delhi and UP's Kanpur-Kabrai highway

NEW DELHI, July 1: The Cabinet, chaired by Prime Minister Narendra Modi, approved the construction of an 8.1-km, six-lane tunnel on NH-148AE linking the Dwarka Expressway with Nelson Mandela Marg in Vasant Kunj, Delhi.

The Union Cabinet on Wednesday approved two major road infrastructure projects worth Rs 14,115 crore in Delhi and Uttar Pradesh.

The Cabinet cleared the construction of an 8.1-km, six-lane tunnel on NH-148AE linking the Dwarka Expressway with Nelson Mandela Marg in Vasant Kunj, Delhi, at an estimated cost of Rs 6,969.67 crore.

It also approved the 117.7-km, four/six-lane access-controlled Kanpur-Kabrai section of NH-34 in Uttar Pradesh, estimated to cost Rs 7,145.14 crore, Information and Broadcasting Minister Ashwini Vaishnaw said.

The approvals come even as a government report highlights the execution challenges facing large infrastructure projects.