New Delhi, Sept. 22 -- The National Payments Corporation of India clarified that allegations regarding Goods and Services Tax (GST) on Unified Payments Interface (UPI) Merchant Discount Rate (MDR) burdening small merchants and making digital payments costly are incorrect.

Addressing concerns circulating in the public domain, NPCI stated that retail digital transactions remain insulated from the levy.

In a statement posted on social media platform X, NPCI said, "Certain media reports have alleged that GST on UPI Merchant Discount Rate (MDR) will burden small merchants and make digital payments costly. This is incorrect."

The NPCI noted that the MDR framework applies strictly to higher-value commercial transfers, leaving everyday digital...