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

[Abhishek012]

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.

 

[Aniket Sharma]

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.

Bhai q pichhe pde ho ek v high end card RUPAY pe ni hai mrwa do sbko

Ultra devaluation king

Bank se aapko yhi reward milega.

Maine bahot unemployed logo ko dekha hai pr tm jaisa ajuba aajtk ni dekha.

Unemployed hoke v apne pet pe laat marte ho.

Channel pe to content bnane k liye kchh to chhoro warna tmhe hi bhaadi prega.

 

[vadixit]

Why do you think RuPay is not good enough to compete in level playing field with other parties? Before 1991, government controlled most the things and we know how the situation was then. There is one thing to push for local companies but penalizing others might not be a good thing in long run unless we have multiple local companies to have competition.

 

[6ix9ine]

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.

 

[Dreams Of Desire 💓]

Gobermint should stop/restrict use of bhisa and sistercard just like Chinese samaan.
#Local se vocal only rupay should be allowed for online txns. No other party. 😤

 

[Abhishek012]

Why do you think RuPay is not good enough to compete in level playing field with other parties? Before 1991, government controlled most the things and we know how the situation was then. There is one thing to push for local companies but penalizing others might not be a good thing in long run unless we have multiple local companies to have competition.

India always makes wrong decisions. The USA and China are great examples of what a country should do to increase domestic products and what should be done with other countries’ card networks?

Before 1991 there was socialism, and capitalist countries never allow another country’s card network—like the USA, China, and a few others.

This is not about a level playing field or competition. Capitalism doesn’t allow it; because of national security, you don’t hand over your control to someone else.

If you want to create a level playing field and competition, do it in other areas. There are thousands of things for competition.

 

[ash_m]

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.

This is complete bullshit.

Since when did having a Visa or Mastercard network cards become a luxury. Perhaps you take inspiration from the age old definition of luxury in this country.

I think you're confused between a good and a bad product. People or Banks don't choose Visa or Mastercard for their cards because it looks shiny in the wallet rather they choose it because it has better acceptability across the world. A lot of shops don't even accept RuPay, all thanks to high MDR and a lot of confusion around it. Instead of making it a better product, you're here suggesting "if Rupay cannot become better, lets pull others down".

 

[ash_m]

India always makes wrong decisions. The USA and China are great examples of what a country should do to increase domestic products and what should be done with other countries’ card networks?

Before 1991 there was socialism, and capitalist countries never allow another country’s card network—like the USA, China, and a few others.

This is not about a level playing field or competition. Capitalism doesn’t allow it; because of national security, you don’t hand over your control to someone else.

If you want to create a level playing field and competition, do it in other areas. There are thousands of things for competition.

Okay, so this is now about nationalism and national security?

Let me break this to you, all of this boycott movement is for the masses. Remember, India-China conflict?
People broke TVs, they intentionally started buying expensive & below par local products just for the sake of nationalism, and founders like Rahul Sharma latched onto it as if they're true nationalists. Reality is that the common people (which includes most of us, irrespective of the socio-economic status) had to suffer.

I'm not saying we should not promote our own products. But if we're promoting a sub-standard product over a better one (which might be foreign), then this is not nationalism buddy.

 

[Adith]

This is complete bullshit.

Since when did having a Visa or Mastercard network cards become a luxury. Perhaps you take inspiration from the age old definition of luxury in this country.

I think you're confused between a good and a bad product. People or Banks don't choose Visa or Mastercard for their cards because it looks shiny in the wallet rather they choose it because it has better acceptability across the world. A lot of shops don't even accept RuPay, all thanks to high MDR and a lot of confusion around it. Instead of making it a better product, you're here suggesting "if Rupay cannot become better, lets pull others down".

I completely agree with this. I'm fed up of seeing such dumb illogical reasoning where if you can't achieve something that someone else has done , then they are bad or luxury or wrong.

I understand "thinking" amex is luxury with all the hype , but even then there are better cards available. Visa and MC are established, stable and provide Good products. That's what a customer needs and is looking for. Same from a shop or a bank or institution perspective.

So instead of fixing issues with rupay or make it better , people wanna take the easy route i.e punish the ones that are doing it right .

 

[Adith]

Btw , if a common man can take an axis airtel MC for 590 rs or an amex smartearn , just like paying 590 for axis airtel rupay , in what world is that luxury ?

Do you even know what luxury actually means ?

 

[Abhishek012]

This is complete bullshit.

Since when did having a Visa or Mastercard network cards become a luxury. Perhaps you take inspiration from the age old definition of luxury in this country.

I think you're confused between a good and a bad product. People or Banks don't choose Visa or Mastercard for their cards because it looks shiny in the wallet rather they choose it because it has better acceptability across the world. A lot of shops don't even accept RuPay, all thanks to high MDR and a lot of confusion around it. Instead of making it a better product, you're here suggesting "if Rupay cannot become better, lets pull others down".

That’s exactly what I’m saying. Whoever wants to use it for international transactions will happily pay even 40% GST. Luxury products are used only by rich people. For international transactions, you’ll use Visa/Mastercard/Amex cards. Who’s stopping you?

Shops that don’t accept RuPay also don’t accept Visa/Mastercard. They only accept bank UPI. Because the MDR is the same for everyone. Small shopkeepers can’t afford 2% MDR, and for big merchants MDR is 1% to 1.5%. This has nothing to do with RuPay, big merchants also pay 1% to 1.5% MDR on RuPay.

And this isn’t about good and bad products. Always for common people. Android, it has always been a bad product and iPhone a good product. But the reality is that iPhone is about luxury and pride. The same goes for RuPay vs. Visa/MC/Amex.

There’s no issue with RuPay and UPI, which were made for ordinary common Indians, work easily everywhere.

The problem is neither with RuPay nor with Visa/Mastercard/Amex.

The question is, since Visa/Mastercard/Amex are seen as luxury and pride, why not put them in the luxury list and impose 40% GST on MDR? Simple.

Whoever needs Visa/Mastercard/Amex will still use them—just like the iPhone.

 

[Abhishek012]

Btw , if a common man can take an axis airtel MC for 590 rs or an amex smartearn , just like paying 590 for axis airtel rupay , in what world is that luxury ?

Do you even know what luxury actually means ?

Company name and logo matter. Apple is about to launch the cheapest MacBook.

People will buy that cheap MacBook just for the Apple logo—watch and see.

Similarly, Mastercard’s logo and Amex’s logo are a matter of pride for Indians.

If Axis Airtel Mastercard has 40% GST on a ₹500 fee — Total ₹700.
If Axis Airtel RuPay has 5% GST on a ₹500 fee — Total ₹525.

People will happily take the Airtel Mastercard because the Mastercard logo matters.

Only ordinary common people will take the Airtel RuPay at ₹525.

 

[Adith]

Company name and logo matter. Apple is about to launch the cheapest MacBook.

People will buy that cheap MacBook just for the Apple logo—watch and see.

Similarly, Mastercard’s logo and Amex’s logo are a matter of pride for Indians.

If Axis Airtel Mastercard has 40% GST on a ₹500 fee — Total ₹700.
If Axis Airtel RuPay has 5% GST on a ₹500 fee — Total ₹525.

People will happily take the Airtel Mastercard because the Mastercard logo matters.

Only ordinary common people will take the Airtel RuPay at ₹525.

Bruh if you think people take card for logo and not for benefits , then that there is a financial education problem which needs fixing. Not a card network problem.

Also , every single person I've helped get axis airtel wanted rupay variant , why ? Cause it looks better or what ? Nope. Cause they can get 1% cb on upi via cc transactions too.

Either you are completely disjointed from reality and legit believe that people take low end card for their networks cause it looks good or you are just making up points that might suit your argument.

Indians are known to save as much as they can , and if you seriously believe that an Indian would prefer looks above actual savings , I don't know what to say.

I'm not saying 100% of people prefer returns to card network, there are definitely those that take a card for aesthetics, but believing people take visa and MC for how "luxurious" it is , it's plain absurd.

Btw of all the people I've interacted with , when it comes to someone taking a card for the network, it's easily distinguished into two categories: 1. Those who take it for the network related offers like Sapphiro amex for amex offers 2. Those who take it cause the card design is beautiful or that it's a metal card .
If people do take visa and MC for pride and luxury , that's definitely like 0.1% . Atleast amex I understand, but seriously, visa and MC ?

 

[Adith]

Btw why is diners club conveniently not mentioned?

Is it because discover which handles both DC and rupay allow inter swipes ?

 

[vadixit]

Company name and logo matter. Apple is about to launch the cheapest MacBook.

People will buy that cheap MacBook just for the Apple logo—watch and see.

Similarly, Mastercard’s logo and Amex’s logo are a matter of pride for Indians.

If Axis Airtel Mastercard has 40% GST on a ₹500 fee — Total ₹700.
If Axis Airtel RuPay has 5% GST on a ₹500 fee — Total ₹525.

People will happily take the Airtel Mastercard because the Mastercard logo matters.

Only ordinary common people will take the Airtel RuPay at ₹525.

Comapany Name and Logo matter because of the trust people have. Why have there been one apple, why did someone not think to create orange logo with even costly phone?This was a opinion page and you can see with all comments where the opinion is.

Also to get unbiased answer, I tried to ask Gemini for service history of last 5 years. Other than Rupay all three had stable system and if someone wants to choose stability why would you want them to pay more?

 

[ash_m]

That’s exactly what I’m saying. Whoever wants to use it for international transactions will happily pay even 40% GST. Luxury products are used only by rich people. For international transactions, you’ll use Visa/Mastercard/Amex cards. Who’s stopping you?

Shops that don’t accept RuPay also don’t accept Visa/Mastercard. They only accept bank UPI. Because the MDR is the same for everyone. Small shopkeepers can’t afford 2% MDR, and for big merchants MDR is 1% to 1.5%. This has nothing to do with RuPay, big merchants also pay 1% to 1.5% MDR on RuPay.

And this isn’t about good and bad products. Always for common people. Android, it has always been a bad product and iPhone a good product. But the reality is that iPhone is about luxury and pride. The same goes for RuPay vs. Visa/MC/Amex.

There’s no issue with RuPay and UPI, which were made for ordinary common Indians, work easily everywhere.

The problem is neither with RuPay nor with Visa/Mastercard/Amex.

The question is, since Visa/Mastercard/Amex are seen as luxury and pride, why not put them in the luxury list and impose 40% GST on MDR? Simple.

Whoever needs Visa/Mastercard/Amex will still use them—just like the iPhone.

I don't know your definition of rich. You speak as if people who have worked hard to grow in the socio-economic ladder have somehow planted trees of money that they can pay 40% GST "happily". This is similar to paying income taxes, I don't "happily" pay high taxes (with additional 10% surcharge over taxes) every year.

I doubt you have an understanding of luxury. You're comparing an "apple" with an "orange". Apple products indeed come with a social status, but no-one, literally no-one applies for a CC thinking "Oh, this is Visa/Mastercard. It is a luxury product". Of course people do want to get premium cards that come with great benefits. Most people prefer Visa/MasterCard just for one reason - better acceptability everywhere both domestic and international. And they're in business for a long time so they're reliable as well.

You say RuPay was built for "ordinary common" Indians. I don't know if I am one of those according to you, but I do buy vegetables, fruits and even groceries at times from our local vendors. And none of them accept payment via UPI on RuPay CC. I literally took a RuPay card for this very same purpose, and do you know the reason?
They've disabled it for one reason - MDR, even though if I am not wrong MDR is only chargeable on turnover over 20L.

That's an example of a bad product. A good product doesn't have so many if's and but's - it keeps things simple and straightforward especially when it is new, and is supposed to be used by "ordinary common" people according to you. The speciality of a RuPay CC is that you can pay using UPI. But if that itself doesn't work (even IRCTC doesn't accept it via UPI), then the truth is it's a bad product.

 

[Krishna Kumar]

Luxury: an inessential, desirable item which is expensive or difficult to obtain.

#1: Every Tom, Dick, and Harry has one or more Visa/Mastercards with Zero fees- Expensive ❌
#2: Millions of Indian people were provided with a Visa/Mastercard as an ATM/Debit card for years (Most of them don't even know fully about their card) - Difficult to obtain ❌

Basically, your understanding of the word "Luxury" is totally wrong.

 

[Adith]

Id say this post is a prime example of what a bad faith argument actually is .

Misconstrued facts , illogical reasoning, no basis in reality , infactual.

 

[ash_m]

Id say this post is a prime example of what a bad faith argument actually is .

Misconstrued facts , illogical reasoning, no basis in reality , infactual.

Couldn't agree more.

This whole argument itself sounds more like "if I cannot have it, so let me suggest no one should have it".

 

[Abhishek012]

Bruh if you think people take card for logo and not for benefits , then that there is a financial education problem which needs fixing. Not a card network problem.

Also , every single person I've helped get axis airtel wanted rupay variant , why ? Cause it looks better or what ? Nope. Cause they can get 1% cb on upi via cc transactions too.

Either you are completely disjointed from reality and legit believe that people take low end card for their networks cause it looks good or you are just making up points that might suit your argument.

Indians are known to save as much as they can , and if you seriously believe that an Indian would prefer looks above actual savings , I don't know what to say.

I'm not saying 100% of people prefer returns to card network, there are definitely those that take a card for aesthetics, but believing people take visa and MC for how "luxurious" it is , it's plain absurd.

Btw of all the people I've interacted with , when it comes to someone taking a card for the network, it's easily distinguished into two categories: 1. Those who take it for the network related offers like Sapphiro amex for amex offers 2. Those who take it cause the card design is beautiful or that it's a metal card .
If people do take visa and MC for pride and luxury , that's definitely like 0.1% . Atleast amex I understand, but seriously, visa and MC ?

You’re forgetting what I’ve always said. Customers are fools—they hardly know what they want; companies are the ones who tell them.

Twenty years ago, Apple was just like other companies. It was made into a luxury product.

Visa/MC/Amex can easily make themselves the same way, so that Indian people get an orgasm just from their logo, crave it for the logo. Of course, Visa/MC/Amex will sometimes give promotional offers for that too.

After 40% GST is imposed on MDR, Visa/MC/Amex will also change their business model—so that Indians drool just by looking at their logo, so that Indians go crazy seeing their logo, running to lick it. Barking like dogs—bow bow bowwwwwwwwwww!—whenever they see a Visa/MC/Amex logo.

It may sound like a joke, but for this, Visa/MC/Amex would need to hire a strong marketing team. Still, it’s not impossible.