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Business News›Industry›Banking/Finance›Finance›GST Council to take view on 18% levy on UPI merchant fees: Report

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GST Council to take view on 18% levy on UPI merchant fees: Report
Synopsis

The GST Council will meet on October 7 to discuss GST levy on UPI merchant fees exceeding Rs 2,000. The government has proposed a 0.4 percent merchant discount rate that will apply from October 15. This merchant discount rate will be capped at Rs 300 and is considered a taxable service under GST. Merchants will be able to claim Input Tax Credit on the GST paid on the merchant fees.

TIMESOFINDIA.COM

New Delhi: The GST Council, chaired by the Union Finance Minister, will take a view on GST levy on merchant fees for UPI transactions above Rs 2,000, government sources said on Thursday.



Effective October 15, UPI payments to merchants (P2M) above Rs 2,000 will attract a 0.4 per cent merchant discount rate (MDR) with an overall cap of Rs 300.



Also Read: Proposed 0.4% UPI merchant fee will not be passed to consumers: Report

Sources said services attract GST, decided by the Goods and Services Tax Council, chaired by the Finance Minister and comprising state counterparts.



"We are hopeful that the GST Council will take a view on the 18 per cent GST on merchant fee on UPI transactions in the larger interest of consumers as was done in case of insurance premium," sources said.




The next GST Council meeting is scheduled for October 7.

Sources also indicated that the Council, in its next meeting, will focus on simplifying the GST process and will not take up tax rate changes.

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