GST on MDR will not impose additional burden on merchants: NPCI explains how they can adjust it against tax liability

UPI MDR of 0.4% will apply to P2M transactions above ₹2,000 from 15 October. NPCI says GST paid on MDR can be adjusted against GST payable on sales through input tax credit. Small merchants with monthly UPI receipts up to ₹1 lakh will continue to have zero MDR.