GST Council meeting on October 7, small traders hope for UPI MDR relief

The GST Council's 57th meeting will now be held on October 7, 2026. It was originally scheduled for September 12, 2026, but was postponed because of the BRICS summit. Officials will meet on October 5 and 6 ahead of the council meeting.

The meeting is expected to take up important decisions on the UPI MDR charge, which has caused considerable resentment among traders recently. The government has announced that from October 15, a 0.4 percent MDR charge will apply on person-to-merchant UPI transactions above Rs 2,000.

It is being expected that small traders could get relief from this UPI MDR charge. Last year, the GST Council's 56th meeting was held on September 3 and 4, 2025, at which changes were made to GST rates and categories. On this basis, it is believed that this time's meeting could also bring major changes and relief.

Several traders have already stopped accepting UPI payments. They say it will only cause them losses, so they are gradually withdrawing the facility. The burden of the MDR falls not on customers but on traders. This means UPI payments will remain free for customers, but the charge could add to the worries of small traders. The charge will apply only to merchant payments, meaning person-to-person payments will not attract any charge.

Finance Minister Nirmala Sitharaman has clarified that this is not a tax, but only a charge meant to maintain the digital payment system and keep the infrastructure running smoothly. The government has also said that most transactions are below Rs 2,000 and will not attract this charge.

Even so, the strongest opposition is coming from small traders, because traders whose turnover is below the GST registration limit do not register for GST. As a result, they cannot claim input tax credit, which could place an additional burden on small traders. This is why the government is expected to offer these small traders some relief at the next GST Council meeting.