The National Payments Corporation of India (NPCI) has said that claims that GST on UPI Merchant Discount Rate (MDR) will burden small merchants and make digital payments costlier are incorrect.
In a post on X, NPCI said MDR applies only to person-to-merchant (P2M) transactions above Rs 2,000. Transactions up to Rs 2,000 will continue to have zero MDR and, consequently, no GST impact.