News

The 18% Goods and Services Tax (GST) applicable on Merchant Discount Rate (MDR) for UPI transactions exceeding Rs.2,000 can be claimed as ITC by GST-registered businesses. 


18% GST on UPI Merchant Discount Rate to Apply on Transactions Above Rs.2,000 From October 15

A PIL has been filed before the Supreme Court challenging the Centre’s decision to introduce a Merchant Discount Rate (MDR) on UPI transactions exceeding Rs.2,000.

PIL in Supreme Court Challenges 0.4% MDR on UPI Transactions Above Rs.2,000

Credit card cashbacks and reward points are generally treated as discounts, but their taxability may depend on how the benefits are received or used.

Is Income Tax Payable on Credit Card Cashback and Reward Points? Know What Experts Say

Judgement

The ITAT rules receivables discounting is not interest, quashing over Rs.9.91 crore TDS demand.

ITAT Holds Receivables Discounting Charges Not Liable to TDS Under Section 194A

ITAT allows upfront debenture discount deduction and restricts Section 14A to exempt income-yielding investments.

ITAT Allows Full Deduction of NCD Discount in Year of Issue; Section 14A Disallowance Restricted to Exempt Income-Yielding Investment.

ITAT Allows Full Deduction of NCD Discount in Year of Issue; Section 14A Disallowance Restricted to Exempt Income-Yielding Investment

Credit card rewards, cashback, and air miles are usually treated as discounts, not taxable income. However, if converted to cash or linked to business transactions, they may become taxable.

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18% GST on UPI Merchant Discount Rate to Apply on Transactions Above Rs.2,000 From October 15

PIL in Supreme Court Challenges 0.4% MDR on UPI Transactions Above Rs.2,000

Is Income Tax Payable on Credit Card Cashback and Reward Points? Know What Experts Say

ITAT Holds Receivables Discounting Charges Not Liable to TDS Under Section 194A

ITAT Allows Full Deduction of NCD Discount in Year of Issue; Section 14A Disallowance Restricted to Exempt Income-Yielding Investment

Are credit rewards, cashback, and Air miles taxable in India?