18% GST on UPI MDR? NPCI says merchants can offset the tax
The National Payments Corporation of India (NPCI) confirmed that merchants can offset the 18% Goods and Services Tax (GST) on the Unified Payments Interface (UPI) Merchant Discount Rate (MDR). This clarification allows merchants to claim input tax credits, potentially easing the financial burden of the new tax. The implementation of this tax is expected to affect transaction costs for merchants.