C Rangarajan suggests GST Council exempt MDR on UPI
Business
Former RBI governor C Rangarajan has suggested that the GST Council should drop taxes on the merchant discount rate (MDR) for UPI payments.
He pointed out that if MDR attracts GST because it is "a price paid," it could end up being taxed.
Rangarajan calls UPI a public good
Former RBI governor C Rangarajan called UPI a "public good," saying there was a cost involved in operating the UPI infrastructure and questioning whether merchants should be charged for transactions.
Other experts at the event praised UPI for making digital payments simple, even in remote areas, but also highlighted the need to keep improving security and access so everyone can use it safely.