UPI MDR above Rs 2,000 to attract 18% GST, merchants can claim input tax credit
- Posted on September 16, 2026
- By Business News Today
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- 1 min read
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UPI MDR above Rs 2,000 to attract 18% GST, merchants can claim input tax credit
UPI payments to merchants above two thousand rupees will attract a zero point four percent merchant discount rate. Merchants will pay eighteen percent GST on these charges, which is effective October 15th. Registered merchants can claim input tax credit on the GST paid on these fees. This tax structure aims to generate significant GST revenue for the government annually.
