Own a shop? (and what your customers end up paying)
The fee lands on you, not on them. This works out what it costs you a month, and how much of it ends up in your prices.
The ₹1,00,000 a month line decides everything.
Only those bills carry a fee, so this is their average, not your overall one.
An average cannot tell us this. A ₹2,500 average could be every bill at ₹2,500, or half at ₹500 and half at ₹4,500. Only this share decides what you pay.
You would pay
P2M after 3 months₹472
a month on UPI, with expected GST. Over the ₹1,00,000 a month line. P2M applies once you have been above it for 3 consecutive months.
Monthly UPI inflow
₹1,00,000 line
₹2,50,000 a month, over the line. It takes 3 consecutive months above it before P2M actually applies.
Cost of accepting the same money
Staying on UPI keeps ₹3,953 a month. Cards would cost 9.4x as much.
To cover it, prices would have to rise
0.19%, or about ₹6.61 on one of those bills
That is the part your customers end up carrying.
- MDR before GST
- ₹400
- GST expected on that at 18%
- ₹72
- Money through bills above ₹2,000
- ₹1,00,000
- Roughly that many such bills
- 28
This bites only after 3 straight months over the line. MDR is expected to carry 18% GST on top, and a GST-registered merchant can claim that back as input tax credit, so the real cost is closer to the MDR alone.
The 18% is not in NPCI’s FAQ. It is what press reporting expects to apply to MDR. Treat the fee alone as the firm number.