There should be no GST on MDR for UPI transactions: C. Rangarajan
C. Rangarajan, former RBI governor, says GST should not apply to the merchant discount rate (MDR) on UPI transactions. He argues that taxing MDR would raise merchants’ costs and slow digital payment adoption. The proposal reflects ongoing debate over tax treatment of UPI services, with some stakeholders supporting GST neutrality for the sector in India.