NPCI Says GST on UPI MDR Will Not Hit Small Merchants as Most Payments Stay Below Taxable Threshold
The National Payments Corporation of India has said that GST on the merchant discount rate linked to UPI transactions will not materially burden small businesses, arguing that the vast majority of merchant payments remain outside the chargeable band. NPCI said transactions below Rs 2,000 attract zero MDR and therefore no GST, while merchants can also offset any GST paid on MDR against their tax liability.
