UPI MDR Above Rs 2,000 to Attract 18% GST, Merchants Can Claim Input Tax Credit

UPI payments: GST on MDR applicable, but customers should not bear merchant charges, government sources say

Customers will not incur merchant payment charges as the government ensures businesses don't pass these costs on. Officials are monitoring the implementation closely. 

GST of 18 per cent to apply on MDR for UPI payments above ₹2,000: What this means

An 18% GST will be applied to UPI transaction Merchant Discount Rates above 2,000, increasing the effective MDR. Person-to-person transactions are.UPI charges, GST on UPI, Merchant Discount Rate, UPI payment tax, new UPI rules, digital payment changes, transaction charges India, small merchant GST, person to person UPI, UPI for business, credit card MDR, debit card MDR, RuPay debit card, petrol UPI charges, government revenue MDR

UPI MDR above Rs 2,000 to attract 18% GST, merchants can claim input tax credit

UPI payments to merchants above two thousand rupees will attract a zero point four percent merchant discount rate. Merchants will pay eighteen percent GST on these charges, which is effective October 15th. Registered merchants can claim input tax credit on the GST paid on these fees. This tax structure aims to generate significant GST revenue for the government annually.