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Goods & Service Tax (GST) 25 September 2026

GST Council Reviews 0.4% MDR on UPI Fees

The GST Council will examine the proposed 18% GST on UPI merchant discount rates, which translates to a 0.4% MDR on transactions above ₹2,000. The amendment is scheduled to take effect on October 15, drawing attention from payment processors and merchants who fear cost impacts.

GST Council will assess the 18% GST on UPI merchant fees, which works out to a 0.4% MDR on payments over ₹2,000.

  • Effective date: October 15
  • Applies to transactions above ₹2,000
  • Intended to bring digital payment taxes in line with the broader GST framework

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