New Delhi, Sept. 23 -- The National Payments Council of India (NPCI) dismissed as "incorrect" speculation that goods and services tax (GST) on UPI merchant discount rate (MDR) will burden small merchants and make digital payments costly.

In a post on social media platform X (formerly known as Twitter) on Monday, NPCI stated that since MDR applies only on person-to-merchant (P2M) transactions over Rs.2,000, payments below this "continue to have zero MDR and therefore zero GST impact".

Thus, the allegations "that GST on UPI Merchant Discount Rate (MDR) will burden small merchants and make digital payments costly. is incorrect", it said, adding that government data indicates transactions of up to Rs.2,000 constitute more than 96% of UPI me...