GST on MDR will not impose additional burden on merchants: NPCI explains how they can adjust it against tax liability
The National Payments Corporation of India (NPCI) clarified that GST on the Merchant Discount Rate (MDR) for UPI payments over ₹2,000 will not burden merchants. Since over 96% of UPI transactions are below this threshold, they remain exempt from MDR and GST. Merchants can adjust GST paid on MDR against their overall tax liability, mitigating any additional costs.