GST Council declines to decide UPI MDR, Nirmala Sitharaman says
The GST Council met today, but did not take any decision on the proposed merchant discount rate (MDR) rollout/deferment for certain UPI payments.
Finance Minister Nirmala Sitharaman said it is not really up to the council to decide on the MDR deferment decision, leaving the matter for other authorities.
States were worried about the current 18% GST on MDR fees, saying it could hit small businesses hard. Some suggested dropping the tax or cutting it down to 5%.
GST Council eases compliance, reforms enforcement
The council also looked at making things easier for taxpayers, like protecting input tax credit if there are supply chain hiccups and simplifying registration for small e-commerce sellers and low-risk taxpayers.
The council approved a significant overhaul of GST enforcement too, such as raising the bar for prosecution and removing arrest powers from tax officers.
Final decisions have already been reached on all agenda items except two, which are still pending more committee feedback.