Wire · operational-macro
NPCI clarifies no GST burden on small merchants over UPI Merchant Discount Rate
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Fusion42 · 22 September 2026 · Fusion42 review
NPCI clarified that small merchants in India will not face a GST burden on UPI Merchant Discount Rate as MDR applies only to transactions above Rs 2,000, which constitute less than 4% of UPI volume. Merchants with monthly UPI receipts up to Rs 1 lakh are not liable to pay MDR, ensuring most small businesses remain unaffected.
This Wire brief sits within Fusion42's coverage of Fintech, and 27 sources have reported it between 15 Sep 2026 and 5 Oct 2026.
◆ ◆ The Wire takeaway
The government confirmed that most small merchants do not face new tax costs on UPI payments, clearing the way for sustained digital payment adoption without additional GST concerns for you if you run a small business in India.
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27 sources · first reported 15 Sep 2026 · latest 5 Oct 2026
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