India Hopes GST Council Will Review UPI Merchant Tax

India expects the GST Council to review the 18 percent tax on UPI merchant fees ahead of an upcoming payment rule change. The government aims to prevent costs from reaching consumers and traders.

PhonePe payment QR code is displayed at a clothing shop in Mumbai, India, September 20, 2026. REUTERS/Francis Mascarenhas

India aims to review an 18% tax on merchant discount rates for UPI transactions. The push targets a fee scheduled to take effect next month.

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