UPI MDR may attract 18 per cent GST; eligible merchants can claim input tax credit

Effective October 15, UPI payments to merchants (P2M) above ₹2,000 will attract a 0.4% merchant discount rate with an overall cap of ₹300. Besides, a flat concessional MDR rate of ₹5 would be applicable on specific merchant categories such as railways, telecom services, insurance, and fuel for transaction above ₹2,000.