GENERAL28 Sept 2026
Supreme Court refuses interim stay on UPI MDR, seeks Centre's response
The Supreme Court refused an interim stay on the UPI merchant discount rate (MDR) and asked the Centre to respond. This affects businesses accepting UPI payments. Justice Bagchi asked whether the charge is a tax or a fee and, if neither, what the legal basis for it is. He also questioned the nature of the service being paid for. Nothing is final yet.
Key Statutory Highlights
- The Supreme Court declined to grant an interim stay on the UPI merchant discount rate.
- The court asked the Centre to respond in the matter.
- Justice Bagchi asked whether the charge is a tax or a fee, and what its legal basis is if it is neither.
Actionable Advice for Taxpayers / Founders:Keep an eye on this case before you change how you price UPI payments for customers. Since no final ruling has come yet, treat your current UPI charges as unchanged for now.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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