GST on UPI MDR: Government rejects ‘tax on UPI’ rumours, says MDR will be set off through input tax credit
GST Council is in focus in a taxation development.
· Business Today Mkts
Government sources said GST will apply to the MDR charged on eligible UPI transactions, but there is no separate GST on UPI payments.
The analysis
This is a Tax / tariff / duty event. Duty and incentive changes reset landed cost and competitive position immediately, and unlike demand shifts they arrive on a known date.
Why it matters
- Tax changes flow through to post-tax earnings and can shift the relative appeal of entire asset classes.
- With GST Council involved, this carries a regulatory dimension that can outlast the immediate market reaction.