UPI MDR, GST explained: Here’s why most merchants , consumers won’t be affected

The National Payments Corporation of India (NPCI) on Tuesday dismissed concerns that GST on UPI Merchant Discount Rate (MDR) will raise digital payment costs for small merchants, stating that most transactions will not be impacted.

In its official X account, NPCI wrote, “Certain media reports have alleged that GST on UPI Merchant Discount Rate (MDR) will burden small merchants and make digital payments costly. This is incorrect.”