GST on payment gateway fees: a simple guide

Payment gateway charges are a service, and GST may apply to that service. In UPIPayments, GST is charged only on the transaction charges, never on the payment amount itself, at the rate shown on your package. Packages with no transaction charges have no GST to pay either.

How it is calculated

GST = transaction charge × GST rate. With a transaction charge of ₹5.00 and 18% GST, the GST is ₹0.90. Amounts are worked out in paise, so rounding is exact.

Where to see it

  • Each payment shows transaction charges and GST separately.
  • Your wallet statement shows each fee debit.
  • Package invoices show GST on the package price when your platform charges it.

For tax advice specific to your business, please talk to your chartered accountant.

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