NPCI clarifies UPI fees: no MDR GST <=₹2,000 monthly <=₹1L
Business
If you use UPI to pay at shops or online, here's some good news: NPCI has clarified that nearly all transactions up to ₹2,000 won't have any extra charges (MDR) or GST for merchants.
Plus, small businesses with monthly UPI receipts of up to ₹100,000 (₹1 lakh) also don't need to worry about these fees.
MDR 0.4% capped ₹300 GST claimable
For bigger transactions above ₹2,000 where MDR does apply, the GST paid on those charges can be claimed back as input tax credit by merchants.
Starting October 15, 2026, a 0.4% MDR will kick in for those larger payments, but it's capped at ₹300 per transaction.