NPCI says GST on UPI MDR won't burden small merchants on payments under Rs 2,000
- The National Payments Corporation of India NPCI clarified that GST on UPI MDR won't burden small merchants.
- Merchant Discount Rate MDR applies only to person-to-merchant transactions above Rs 2,000, with lower transactions facing zero MDR impact.
- Over 96% of UPI merchant transaction volume falls under Rs 2,000, exempting most payments from GST on MDR.
- Merchants with monthly UPI receipts up to Rs 1 lakh are not liable to pay MDR, avoiding any GST impact.
Source: economictimes.indiatimes.com
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