# 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.
- Title: GST Council to review 18% UPI merchant fee levy | Shortify
- Summary: 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…
- Keywords: gst council, upi merchant fees, rs 2000, 0.4 per cent mdr, input tax credit, merchants, GST, Council, review, UPI, merchant, fee
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/banking/finance/gst-council-to-take-view-on-18-levy-on-upi-merchant-fees-report/articleshow/134466846.cms
- Author: PTI
- Published: 2026-09-24T16:39:00+00:00
- Read time: 1 min
- Topics: gst council, upi merchant fees, rs 2000, 0.4 per cent mdr, input tax credit, merchants
## 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.
## Key takeaway

GST Council to consider 18% GST on UPI merchant fees exceeding Rs 2,000 from October 15.