The National Payments Corporation of India has said the goods and services tax applied to the merchant discount rate on UPI transactions will not materially burden small merchants, arguing that the structure already shields the vast majority of low-value payments. NPCI noted that transactions below Rs 2,000 attract zero MDR and therefore no GST, while merchants can offset any GST paid on MDR against their tax liability.
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"NPCI Says GST on UPI MDR Will Not Burden Small Merchants as Most Payments Stay Exempt"
The National Payments Corporation of India has said the goods and services tax applied to the merchant discount rate on UPI transactions will not materially burden small merchants, arguing that the structure already shields the vast majority of low-value payments. NPCI noted that transactions below Rs 2,000 attract zero MDR and therefore no GST, while merchants can offset any GST paid on MDR against their tax liability.
NPCI Says GST on UPI MDR Will Not Burden Small Merchants as Most Payments Stay Exempt
R
RDU Global Wire
BFSI & Fintech Desk
New Delhi, India Just now (11:46 PM IST)•5 min read
The National Payments Corporation of India has said the goods and services tax applied to the merchant discount rate on UPI transactions will not materially burden small merchants, arguing that the structure already shields the vast majority of low-value payments. NPCI noted that transactions below Rs 2,000 attract zero MDR and therefore no GST, while merchants can offset any GST paid on MDR against their tax liability.
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