From The Economic Times · PTI · · 1m
GST Council to review 18% UPI merchant fee levy
GST Council will assess 18% levy on UPI payments over Rs 2,000 starting October 15.
In brief
GST Council will assess 18% levy on UPI payments over Rs 2,000 starting October 15. GST Council to consider 18% GST on UPI merchant fees exceeding Rs 2,000 from October 15. Originally reported by The Economic Times.
GST Council meeting
The GST Council will meet on October 7 to discuss GST levy on UPI merchant fees exceeding Rs 2,000.
0.4% UPI merchant fee
Effective October 15, UPI payments to merchants above Rs 2,000 will attract a 0.4 per cent merchant discount rate with an overall cap of Rs 300.
18% GST on fees
Services attract GST, decided by the GST Council, which will levy 18 per cent on UPI merchant fees.
Input Tax Credit
Merchants can claim Input Tax Credit on GST paid for UPI merchant fees to reduce tax burden.
Council focus
The GST Council will focus on simplifying GST process in next meeting, not tax rate changes.
The main idea
GST Council to consider 18% GST on UPI merchant fees exceeding Rs 2,000 from October 15.
