Opinion | Govt should reduce GST on MDR for RuPay/UPI & increase it for luxury Visa/Master/Amex cards transaction

[pranav.kakani]

I cant believe that people have phones in which almost all components are imported, wear clothes of fabric that needed jmported machinery, etc can make such polls and comments and people here supporting this?
WOW

 

[akshayhs]

 

[Manishg]

Opinion | Govt should reduce GST on MDR for RuPay/UPI & increase it for luxury Visa/Master/Amex cards transaction:

Hey guys, what do you think about this?

The Government should reduce GST on MDR from 18% to 5% for RuPay Credit Card, RuPay CC EMI, Credit UPI and UPI EMI transactions — and increase GST on MDR from 18% to 40% for Visa, MasterCard, and Amex Card transactions under the “luxury product” category.

Look, we all know Visa, MasterCard, and Amex cards are luxury products. They’re a matter of pride for Indians and the Government should impose 40% GST on MDR for their transactions.

Not just transactions — even for EMI transactions made using Visa, MasterCard, or Amex cards, as well as the 1–2% processing fees charged by banks for EMI conversion, GST should be raised from 18% to 40%.

On the other hand, for RuPay Credit Card and Credit on UPI transactions, GST on MDR should be reduced from 18% to 5%. Similarly, on EMI interest for RuPay Credit Card and Credit on UPI transactions, GST should be reduce at 5%. For EMI conversions where banks charge 1–2% processing fees, GST should also be reduced from 18% to 5%.

This is just my personal opinion — I don’t think anyone will have a problem with it.

People will still happily use Visa, MasterCard, and Amex cards because they are considered a matter of pride and most importantly, Visa, MasterCard, and Amex Card are luxury products.

No matter who it is —

• Technofino’s Mr. Sumanta Mandal
• Proud Visa/MasterCard/Amex users like DD's Mr. Jimish Jobanputra and Mr. Mehul Jobanputra, CI’s Mr. Ankur Mittal, CE’s Mr. Siddharth, CM’s (sorry, forgot the name), @AmazingCreditC’s Founder,

Or other credit card influencers such as Mr. Kashif Ansari, Mr. Yash Sartanpara, Mr. Akash, Mr. Vineeth K, CA Roshan Agarwal, Mr. Gajender Yadav, Mr. Satish Agarwal, Mr. Ravi Sutanjani, Professor Cardz, Mr. Tarush Jain, Mr. Subhankar, Mr. Bhavye Goel, Mr. ANNA DM, Mr. Siddharth Bhimani, SpendWisely, Nebula_world, Bekifaayati girl, CardAcademy girl etc. (sorry, there are many more whose names I can’t recall right now).

All of them and other proud Visa, MasterCard, and Amex card users, will willingly accept even 40% GST — just like people do for iPhones.

But for us ordinary RuPay users (like me or the rest of you are all ordinary RuPay users), if GST on MDR is cut to 5%, then merchants will offer more discounts and EMI will also become more beneficial. We can also save a good amount of money on GST charged on EMI interest and EMI conversion for RuPay and UPI transaction.

@Abhishek012 You are not right here as per my point of view.

Government can provide subsidy for MDR to merchants or can lessen MDR on rupay credit card but GST should be same for all card networks either 5 or 18 it doesn't matter but same for all card networks.

This will be unethical practice and also having visa and Mastercard credit card doesn't mean you are rich. Like holding hdfc classic status doesn't mean you are maintaining 1 lakh. Sometimes hdfc allows classic status without fulfillment of criteria.

Sometimes, like idfc wow card have free fees but on visa that too infinite but idfc rupay digital card have fees of 199 although it is virtual.
Hdfc bank can offer millennia visa ltf but money back rupay chargeable. So it doesn't make any sense to judge rich or poor by card network. Maybe that person having Mastercard got swiggy card as ltf while he was getting rupay tata neu as paid.

Here how can a person be judged on that basis-

In your sense, Having Apple IPhone of 80000 is rich while having Samsung Galaxy S24 ultra over 1 lakh is middle class person.

Having Tata NEU infinity on rupay variant means you are middle class and having Tata NEU plus on visa variant means you are rich.
Think again!

 

[Rakshitk99]

Nahi, logo ka ek mindset banna chahiye ki Visa sirf rotate money k liye hote hai and RuPay/UPI genuine shopping transaction karne k liye.

Taki long term me banks ko samjhme aaye ki Visa dene se customers bas misuse karega, RuPay/UPI dene se customer genuine transaction karega.

Rupay and genuine in single sentence 🤣

 

[Abhishek012]

 

[rimtesh]

If I would have been the forum owner, I would have banned him way earlier, but we can't blame technofino here, this guy is one of the reason why this forum gets this much traffic

 

[Abhishek012]

If I would have been the forum owner, I would have banned him way earlier, but we can't blame technofino here, this guy is one of the reason why this forum gets this much traffic

Democracy means that everyone has the right to speak to give their opinion and that opinion should be respected.

And based on everyone’s opinions, a neutral and positive decision is made — one in which everyone stays happy.

Some small quarrels keep happening, that’s a different matter (That’s exactly what makes us human — to laugh, smile, fight, love, angry, happy etc. Otherwise, we would just become robots).

I advise everyone to use RuPay and UPI and support our Indian product, but at the end of the day, the decision is theirs — what they want to do.

Otherwise, I could also talk like you — if I had the power, I would have ___________ all Visa/Mastercard users (fill in the blanks. Just assume on your own and fill in what I’m trying to say). 🤣🤣

 

[ashwinikumar900]

Opinion | Govt should reduce GST on MDR for RuPay/UPI & increase it for luxury Visa/Master/Amex cards transaction:

Hey guys, what do you think about this?

The Government should reduce GST on MDR from 18% to 5% for RuPay Credit Card, RuPay CC EMI, Credit UPI and UPI EMI transactions — and increase GST on MDR from 18% to 40% for Visa, MasterCard, and Amex Card transactions under the “luxury product” category.

Look, we all know Visa, MasterCard, and Amex cards are luxury products. They’re a matter of pride for Indians and the Government should impose 40% GST on MDR for their transactions.

Not just transactions — even for EMI transactions made using Visa, MasterCard, or Amex cards, as well as the 1–2% processing fees charged by banks for EMI conversion, GST should be raised from 18% to 40%.

On the other hand, for RuPay Credit Card and Credit on UPI transactions, GST on MDR should be reduced from 18% to 5%. Similarly, on EMI interest for RuPay Credit Card and Credit on UPI transactions, GST should be reduce at 5%. For EMI conversions where banks charge 1–2% processing fees, GST should also be reduced from 18% to 5%.

This is just my personal opinion — I don’t think anyone will have a problem with it.

People will still happily use Visa, MasterCard, and Amex cards because they are considered a matter of pride and most importantly, Visa, MasterCard, and Amex Card are luxury products.

No matter who it is —

• Technofino’s Mr. Sumanta Mandal
• Proud Visa/MasterCard/Amex users like DD's Mr. Jimish Jobanputra and Mr. Mehul Jobanputra, CI’s Mr. Ankur Mittal, CE’s Mr. Siddharth, CM’s (sorry, forgot the name), @AmazingCreditC’s Founder,

Or other credit card influencers such as Mr. Kashif Ansari, Mr. Yash Sartanpara, Mr. Akash, Mr. Vineeth K, CA Roshan Agarwal, Mr. Gajender Yadav, Mr. Satish Agarwal, Mr. Ravi Sutanjani, Professor Cardz, Mr. Tarush Jain, Mr. Subhankar, Mr. Bhavye Goel, Mr. ANNA DM, Mr. Siddharth Bhimani, SpendWisely, Nebula_world, Bekifaayati girl, CardAcademy girl etc. (sorry, there are many more whose names I can’t recall right now).

All of them and other proud Visa, MasterCard, and Amex card users, will willingly accept even 40% GST — just like people do for iPhones.

But for us ordinary RuPay users (like me or the rest of you are all ordinary RuPay users), if GST on MDR is cut to 5%, then merchants will offer more discounts and EMI will also become more beneficial. We can also save a good amount of money on GST charged on EMI interest and EMI conversion for RuPay and UPI transaction.

and also removal of 18% GST on card fees 😁.

 

[ash_m]

Democracy means that everyone has the right to speak to give their opinion and that opinion should be respected.

And based on everyone’s opinions, a neutral and positive decision is made — one in which everyone stays happy.

Some small quarrels keep happening, that’s a different matter (That’s exactly what makes us human — to laugh, smile, fight, love, angry, happy etc. Otherwise, we would just become robots).

I advise everyone to use RuPay and UPI and support our Indian product, but at the end of the day, the decision is theirs — what they want to do.

Otherwise, I could also talk like you — if I had the power, I would have ___________ all Visa/Mastercard users (fill in the blanks. Just assume on your own and fill in what I’m trying to say). 🤣🤣

Anyone should first try to understand why a product hasn't been a big success despite having a lot of things in its favour. Every other roadside vendor has a merchant QR today, but hardly a few of them would even accept payment via RuPay CC. If you really want to "serve the nation", perhaps you can push for making RuPay CC a success instead of being a whiny kid here. UPI is a great product, but even there it is yet to see what happens when it becomes costlier for small businesses.

The amount of effort you've terribly put into blabbering several times that Visa/Mastercard users are "richie-rich" type people, had you put even half of that starting a thread on why "RuPay CC or DC hasn't become the default choice for banks/customers" it would have been a much more fruitful discussion.

But I guess you're just a borderline troll. And it doesn't really matter what you imagine to do - it will remain in your imagination for life.

 

[purushotham]

Will competition comission of India keep quiet when VISA & Mastercard files case over there or they might file case in GST tribunal.

Equality of competation and tax is in India.

They can give only funds to NPCI or tell public banks to fund extra money to NPCI.

See the ownership pattern of NPCI which owns UPI and Rupay

 

[Abhishek012]

Anyone should first try to understand why a product hasn't been a big success despite having a lot of things in its favour. Every other roadside vendor has a merchant QR today, but hardly a few of them would even accept payment via RuPay CC. If you really want to "serve the nation", perhaps you can push for making RuPay CC a success instead of being a whiny kid here. UPI is a great product, but even there it is yet to see what happens when it becomes costlier for small businesses.

The amount of effort you've terribly put into blabbering several times that Visa/Mastercard users are "richie-rich" type people, had you put even half of that starting a thread on why "RuPay CC or DC hasn't become the default choice for banks/customers" it would have been a much more fruitful discussion.

But I guess you're just a borderline troll. And it doesn't really matter what you imagine to do - it will remain in your imagination for life.

It seems many people dnt like when small roadside vendors don’t accept RuPay Credit Card UPI.

But first, understand how credit products work. Not every small roadside vendor can be allowed to accept payments through credit, because there’s always a fraud risk. That’s why small roadside vendors are required to do full KYC, which many don’t — so their payments get declined.

Even for those roadside vendors who complete full KYC, RuPay CC UPI limits are usually restricted to just ₹3k–₹5k because the KYC was done online. If any problem or chargeback happens, the bank has to pay out of its own pocket. Because of this, many transactions still get declined.

Credit products carry a lot of risk for banks. That’s why banks want physical verification for small roadside vendors, which adds to costs.

And the MDR rate is actually fair for small roadside vendors. Because when you take a POS machine, you either have to pay for it or pay rent for it (sometimes banks provide POS machines for free under promotional offers — but that’s a different case). Because of this, banks charge lower MDR.

The MDR on POS machine–linked UPI QR codes is usually between 1% and 1.5%, same as direct credit card swipe.

Lastly, people forget that your rewards and cashback money also comes from MDR. If MDR is reduced too much, it will directly affect your cashback and rewards.

 

[ash_m]

It seems many people dnt link when small roadside vendors don’t accept RuPay Credit Card UPI.

But first, understand how credit products work. Not every small roadside vendor can be allowed to accept payments through credit, because there’s always a fraud risk. That’s why small roadside vendors are required to do full KYC, which many don’t — so their payments get declined.

Even for those roadside vendors who complete full KYC, RuPay CC UPI limits are usually restricted to just ₹3k–₹5k because the KYC was done online. If any problem or chargeback happens, the bank has to pay out of its own pocket. Because of this, many transactions still get declined.

Credit products carry a lot of risk for banks. That’s why banks want physical verification for small roadside vendors, which adds to costs.

And the MDR rate is actually fair for small roadside vendors. Because when you take a POS machine, you either have to pay for it or pay rent for it (sometimes banks provide POS machines for free under promotional offers — but that’s a different case). Because of this, banks charge lower MDR.

The MDR on POS machine–linked UPI QR codes is usually between 1% and 1.5%, same as direct credit card swipe.

Lastly, people forget that your rewards and cashback money also comes from MDR. If MDR is reduced too much, it will directly affect your cashback and rewards.

Well, I appreciate the fact that you've spent the last 3-4 hours compiling all of this over some chatbot, but all of this is the problem statement itself. And in case your chatbot did not tell you, even your P2M UPI txns are free only because the govt has waived it off, obviously to promote digital payments. UPI is not free of cost, it needs infrastructure and maintenance. That translates to MDR or some other charge, if not today but sometime in future. It is not sustainable to keep free forever.

So your whole essay around different types of challenges with RuPay CCs on UPI is baseless. If govt really want adoption of RuPay for CCs and DCs, solve these problems and figure out how you can make it a better product. Why would any bank sell their best CCs or DCs on RuPay network to a customer when it is simply not the best option available in the market in terms of global acceptance, reliability and several other features like global tie-ups, automatic fraud detection. Maybe if this will happen 5 or 10 years down the line, perhaps RuPay will have a lot more adoption for CCs and DCs then. But today, if someone is preaching others to "prefer" RuPay over Visa/Mastercard that's nothing but propaganda.

Of course, another way is that you can kill the competition - but as history tells us, that never goes in the favour of "common" citizens. People who don't learn from mistakes in history are condemned to repeat it.

 

[Abhishek012]

Well, I appreciate the fact that you've spent the last 3-4 hours compiling all of this over some chatbot, but all of this is the problem statement itself. And in case your chatbot did not tell you, even your P2M UPI txns are free only because the govt has waived it off, obviously to promote digital payments. UPI is not free of cost, it needs infrastructure and maintenance. That translates to MDR or some other charge, if not today but sometime in future. It is not sustainable to keep free forever.

So your whole essay around different types of challenges with RuPay CCs on UPI is baseless. If govt really want adoption of RuPay for CCs and DCs, solve these problems and figure out how you can make it a better product. Why would any bank sell their best CCs or DCs on RuPay network to a customer when it is simply not the best option available in the market in terms of global acceptance, reliability and several other features like global tie-ups, automatic fraud detection. Maybe if this will happen 5 or 10 years down the line, perhaps RuPay will have a lot more adoption for CCs and DCs then. But today, if someone is preaching others to "prefer" RuPay over Visa/Mastercard that's nothing but propaganda.

Of course, another way is that you can kill the competition - but as history tells us, that never goes in the favour of "common" citizens. People who don't learn from mistakes in history are condemned to repeat it.

Which chatbot? kuch bhi bakte ho..

I understand that nobody is born educated, but at least try to learn.

Let me make one thing clear: not everything is meant for everyone.

In the USA too, only about 40% of merchants accept credit cards without extra fees. The rest charge extra for credit card acceptance.

What I meant by “not everything is for everyone” is this:

You’re basically saying something like, “Why doesn’t the government make Lamborghinis or Jaguars affordable for everyone?” That’s exactly what you mean when you say this is a problem that needs to be solved.

But the question is—why?

Credit products are meant for a certain class and level of merchants and customers.

For people below that level, there are direct payments from bank accounts, UPI, etc available.

And no central bank (whether RBI or any other country) will ever want the entire population to live on credit. You’ve heard about how the homeless population in the USA keeps increasing rapidly every year, right?

Central banks start pressuring banks, asking why they are giving out credit products to everyone.

The government or central bank doesn’t want a small merchant earning ₹100 or ₹2000 a day to take out ₹1 lakh on credit just by paying 1% charges. It’s not that they will always commit fraud, but they might think, “I’ll pay it back in EMIs,” or use it for gambling hoping it doubles later, or spend it on alcohol thinking they’ll repay little by little. These are the people who default on credit cards., and it’s mostly poor and small merchants who do this.

The first truth people don’t accept is that 90% of Indians don’t even need Visa or Mastercard. RuPay is accepted everywhere that 90% of India’s population use.

That’s why banks always prefer RuPay debit cards. The govt just imposed ZERO MDR so that RuPay debit cards wouldn’t completely destroy Visa and Mastercard. In fact, ICICI had already launched a Super Premium RuPay debit card and Axis, IDFC, HDFC, and Yes Bank had already been allotted at least 2–4 Super Premium RuPay debit card BINs. They’re stuck only because of the zero MDR issue.

RuPay credit cards are just new— banks will slowly launching super premium and ultra-premium cards.

Banks themselves own RuPay and UPI. Sooner or later, they will push RuPay and UPI for 90% of Indians, because banks earn more profit from RuPay and UPI.

NPCI uses Nvidia’s latest AI GPUs for automatic fraud detection. Nvidia itself keeps advertising this, How Nvidia GPU works for fraud detection in NPCI’s UPI and RuPay. Nvidia is doing business here by advertising this, and you’re saying RuPay/UPI does not have best fraud detection. And in payments, NPCI uses the same EMVco 3DS protocol that Visa and Mastercard use.

For someone who doesn’t know about the EMVco 3DS protocol, think of it this way: if a single company like Visa or Mastercard creates some protocol to fight against fraud, it doesn’t necessarily mean it will be the best.

That’s why EMVco was created—to standardize things, so that all card networks like Visa, Mastercard, AMEX, JCB, UnionPay, RuPay, UPI, etc. work together. This way, everyone benefits. This collaboration improves interoperability, security, and global acceptance—benefiting merchants, banks, and customers.