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Policy● Neutral for Indian equities
GST Council may review UPI MDR and an 18% tax next month
The brief
- GST Council will take up a proposal on MDR for UPI
- The government ruled out an MDR burden on UPI users; the Council may review 18% tax next month
- Any MDR or tax change could affect Indian payment firms and merchants using UPI
- 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 may review UPI MDR and an 18% tax next month