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Policy● Neutral for Indian equities
GST Council to review proposed levy on UPI merchant fees above ₹2,000
The brief
- The GST Council is scheduled to meet on October 7 to discuss the levy
- The proposal covers UPI merchant fees above ₹2,000; the government has proposed a 0.4% merchant discount rate
- A levy on UPI fees could affect payment providers and merchants, including Indian fintech companies
- After GST exemption, retail policy base rises 11% for Star Health
- GST Council to simplify processes, cut penalties
- GST Council likely to give green signal for freight movement by metro trains
- Tax audit deadline September 30: 5 common mistakes in GST turnover, TDS, AIS and business expenses to avoid
- The week ahead in numbers: Factory growth, GST collections, vehicle sales
UPI MDR rollout and consumer protection
SBI plans to charge MDR on UPI merchant payments above ₹2,000 from October 15, while officials say MDR collections will not cover UPI’s full operating costs and the government and banks will decide a continuing subsidy. The Finance Minister says the fee will be borne within the merchant-payment ecosystem, not passed to consumers; the government is also discussing safeguards with banks.
Thursday, 24 September
- GST Council to review proposed levy on UPI merchant fees above ₹2,000