GST Council to Review MDR on UPI, No Extension Beyond Oct 15
What Happened
The government confirmed that the October 15 deadline for implementing Merchant Discount Rate (MDR) on UPI transactions will not be extended. The GST Council is expected to review whether MDR should attract 18% GST, with industry bodies warning of higher costs for merchants and consumers. Payment firms argue MDR is necessary to sustain infrastructure, while small businesses fear added financial burden. The Council’s decision will determine how digital payment charges are taxed going forward.
Key Takeaways
The move signals a firm stance on MDR implementation, but uncertainty remains over GST treatment. The outcome will directly affect merchants, fintechs, and consumers as India’s digital payments ecosystem expands.