UPI MDR Set for 18% GST; Eligible Merchants Can Claim Input Tax Credit

Effective October 15, UPI MDR will attract 18% GST, though eligible merchants can claim input tax credit on the fee. Insurtech platforms and payment-linked insurance products should model the true cost of UPI transactions; if payment becomes a customer acquisition cost lever, the effective MDR+GST will compress unit economics for pay-per-transaction models.

Source: ET Tech ↗