Customers should not bear merchant payment charges, government sources told news agency ANI. Officials will closely monitor implementation to ensure businesses do not pass these costs on.
The government has already discussed the issue with payment aggregators, ANI added. Efforts will also be made to address gaps in enforcement.
On taxation, government sources said, “There is no separate GST on MDR.” However, they clarified that GST would apply to MDR charges on . Businesses can claim input tax credit against the GST paid.
“GST will currently be levied on MDR charges applicable to UPI transactions. However, businesses will be able to claim input tax credit against the GST paid. Businesses have the option to set off the liability,” the source added.
(This is a developing story. Check back for more details.)
