October 15 2026 UPI MDR above ₹2,000 attracts 18% GST
Business
Heads up if you run a business: Starting October 15, 2026, accepting UPI payments above ₹2,000 will come with an extra cost.
An 18% GST will be charged on the Merchant Discount Rate (MDR), bumping up the fee from 40 to 47.2 basis points.
If you're GST-registered, you can claim this back as input tax credit, but it still means a higher up-front expense.
GST raises ₹5,000 UPI fee ₹23.60
Say someone pays you ₹5,000 via UPI: the cost jumps from ₹20 to ₹23.60 because of the new GST rule.
Service providers often pass these extra charges onto merchants like you.
There's still a cap: For really big transactions (₹75,000 or more), MDR won't go over ₹300, but with GST now in play, it's smart to factor these costs into your business plans going forward.