{
  "id": 9605814,
  "title": "Govt To Reach Out To Traders Over UPI MDR Concerns; No Extension Beyond October 15",
  "url": "https://urgent.news/2026/09/24/govt-to-reach-out-to-traders-over-upi-mdr-concerns-no-extension",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-24T17:43:16.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/business/govt-to-reach-out-to-traders-over-upi-mdr-concerns-no-extension-beyond-october-15"
  },
  "original_language": "en",
  "account": "The government intends to communicate with traders to address any lingering concerns regarding the Merchant Discount Rate (MDR) applicable to UPI transactions exceeding Rs 2,000, according to a senior official. Transactions under Rs 2,000 continue to incur no MDR, thereby having no impact on GST. Government data reveals that transactions up to Rs 2,000 account for over 96% of UPI merchant transaction volume. Consequently, the majority of UPI payments will not be subject to MDR, and thus no GST on MDR. RuPay cardholders will also not face any charges. The government has firmly rejected reconsidering the MDR, which will commence on October 15 and will not be extended. The Indian Banks Association intends to issue full-page ads on UPI and MDR to dispel misconceptions and clarify the role of banks. For merchants with monthly UPI receipts of up to Rs 1 lakh, there is no liability to pay MDR and consequently no GST on MDR. Hence, worries that GST on MDR will impose an additional financial burden on merchants are unfounded. The vast majority of UPI transactions and small merchants remain unaffected, the official emphasized. GST adjustments applied to MDR paid by merchants will be offset against the GST payable on the sale of goods, mirroring the practice of offsetting input taxes against output tax liability, eliminating the merchants' cost of GST on MDR paid by them. Petrol pump dealers have already consulted senior Petroleum Ministry officials regarding their apprehension of reduced commission margins. The new UPI framework imposes an MDR of Rs 5 per transaction on petrol and diesel purchases exceeding Rs 2,000, which constitute around 30-40% of total purchases across retail outlets nationwide, as per pump owners. The Petroleum Ministry sought to explain the rationale behind introducing the MDR, intended to support the development of India's UPI digital infrastructure (excluding the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed).",
  "summary": "New Delhi, Sep 24: The government plans to reach out to traders to clear any lingering doubts that they have about the Merchant Discount Rate (MDR) that will be applicable on UPI transactions above Rs 2,000, a senior official said. Transactions up to Rs 2,000 continue to have zero MDR and therefore zero GST impact. Government data indicates that transactions of up to Rs 2,000 constitute more than…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}