UPI payments: GST on MDR, but customers should not bear merchant charges, government sources say | Today’s news

Customers should not bear the charges for making payments to merchants, government sources told news agency ANI. Officials will closely monitor implementation to ensure that businesses do not pass on these costs.

The government has already discussed the issue with payment aggregators, ANI added. Efforts will also be made to address gaps in enforcement.

On taxation, government sources said, “There is no separate GST on the MDR.” However, they have clarified that GST will be applicable on MDR charges on UPI payments. Businesses can claim input tax credit against GST paid.

“GST will currently be levied on MDR charges applicable to UPI transactions. However, businesses will be able to claim input tax credit against GST paid. Businesses have an option to set off GST liability,” the source added.

(This is a developing story. Check back for more details.)