Deccan Herald ·
Economy, business and finance
UPI MDR may attract 18% GST; eligible merchants can claim input tax credit
From October 15, merchants will pay 18% GST on UPI MDR charges above Rs 2,000, but can claim input tax credit. Experts break down the tax implications and revenue potential for India’s digital payments ecosystem.
The share of P2M UPI transactions above Rs 2,000 has steadily increased from 15.1 per cent in FY23 to 20.1 per cent in the June quarter of FY27, reflecting a sustained shift towards higher-value merchant payments on UPI.