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

GST on MDR may reach GST Council

The GST Council may address issues on merchant discount rates (MDR) and ITC eligibility for registered merchants.

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. 

18% GST to apply on MDR from October 15, say government officials

The GST will apply only on the MDR charged on eligible UPI transactions and not the whole bill amount

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 could cost 47.2 bps with GST for merchants

The new framework introduces a 0.4% MDR on person-to-merchant UPI transactions above Rs 2,000, capped at Rs 300 on transactions of Rs 75,000 and above, while consumers will not be charged. It takes effect from October 15. GST is paid by the service provider who typically recover the amount from whoever receives service.

UPI MDR may attract 18% GST; merchants can claim ITC

Merchants would have to pay 18 percent GST on the Merchant Discount Rate (MDR) charges for UPI payments above Rs 2,000, but can claim input tax credit (ITC), thereby easing the