Razorpay Fee & 18% GST Calculator
Compute exact deductions for UPI (0%), domestic cards (2.0%), netbanking, and 18% GST tax-on-fee with reverse gross-up invoicing.
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Pass Fee to Client (Legal Surcharge Engine) Calculate zero-shortfall compliant markup & legal surcharge limits
• United States: Visa & Mastercard cap credit card surcharges at 3.00% (effective April 2023). Surcharging debit or prepaid cards is strictly illegal under federal operating rules.
• UK & European Union: Surcharging consumer debit and credit cards is prohibited under PSD2. B2B / corporate card surcharges remain permitted.
• Australia: Governed by RBA; surcharging is legally restricted strictly to the merchant's actual cost of card acceptance.
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Razorpay 2026 Fee & GST Benchmark Table (INR ₹)
Standard domestic 2.0% card processing vs 0% UPI MDR across common Indian invoice amounts.
| Invoice Value | Card 2% Base | 18% GST | Card Total Fee (2.36%) | Card Net Payout | UPI 0% MDR |
|---|---|---|---|---|---|
| ₹1,000 | ₹20.00 | ₹3.60 | -₹23.60 | ₹976.40 | ₹1,000 (₹0 Fee) |
| ₹5,000 | ₹100.00 | ₹18.00 | -₹118.00 | ₹4882.00 | ₹5,000 (₹0 Fee) |
| ₹10,000 | ₹200.00 | ₹36.00 | -₹236.00 | ₹9764.00 | ₹10,000 (₹0 Fee) |
| ₹25,000 | ₹500.00 | ₹90.00 | -₹590.00 | ₹24410.00 | ₹25,000 (₹0 Fee) |
| ₹50,000 | ₹1000.00 | ₹180.00 | -₹1180.00 | ₹48820.00 | ₹50,000 (₹0 Fee) |
| ₹1,00,000 | ₹2000.00 | ₹360.00 | -₹2360.00 | ₹97640.00 | ₹1,00,000 (₹0 Fee) |
Frequently Asked Questions: Razorpay Fees & GST in India (2026)
Detailed guidance on UPI MDR mandates, SAC Code 997159 Input Tax Credit, 194-O TDS rules, and Gross-Up invoicing math.
1. What are Razorpay's payment processing fees in India for 2026?
Razorpay assesses a standard domestic fee of 2.00% across Indian credit cards (Visa, Mastercard, RuPay), domestic debit cards, and netbanking across 58+ Indian commercial banks. UPI transactions (Google Pay, PhonePe, Paytm, BHIM) process at 0.00% MDR for standard individual consumers under government and NPCI directives. International credit and debit cards, as well as corporate cards and American Express, process at 3.00% plus ₹3.00 per transaction. All Razorpay administrative fees are subject to 18% Goods and Services Tax (GST).
2. How does the 18% GST on Razorpay processing fees work, and can I claim Input Tax Credit (ITC)?
In India, the 18% GST is levied exclusively on Razorpay's fee, not on the total invoice amount. For example, on a ₹10,000 payment via credit card (2%), the base Razorpay fee is ₹200.00, and 18% GST is ₹36.00, resulting in a total fee deduction of ₹236.00 (an effective deduction of 2.36%). If your business has an active GSTIN, Razorpay issues a monthly tax invoice (under SAC Code 997159) allowing you to claim the ₹36.00 as Input Tax Credit (ITC) against your outward GST liabilities.
3. How do I calculate the exact Gross-Up invoice amount for Razorpay to cover fees and GST?
To ensure you receive your target net revenue in full, calculate the gross invoice using the GST-Inversion Formula: Gross = Net / (1 - (Rate × 1.18)). For example, to receive exactly ₹10,000.00 net on a 2% domestic card, the calculation is ₹10,000 / (1 - 0.0236) = ₹10,241.70. When you bill ₹10,241.70, Razorpay deducts ₹204.83 base fee + ₹36.87 GST (₹241.70 total), settling exactly ₹10,000.00 into your bank account.
4. Is UPI payment processing really 0% free on Razorpay?
Yes. Under directives from the Ministry of Finance and the National Payments Corporation of India (NPCI), peer-to-merchant (P2M) UPI transactions using standard bank account rails incur zero Merchant Discount Rate (0% MDR). Razorpay provides seamless QR codes, payment links, and dynamic intent flows with zero platform commission for eligible merchants, making UPI the most cost-effective checkout method in India.
5. How does Section 194-O (1% TDS on E-Commerce Operators) apply to Razorpay transactions?
Under Section 194-O of the Indian Income Tax Act, e-commerce marketplace operators are required to deduct 1% Tax Deducted at Source (TDS) on the gross amount of sales when facilitating transactions for participant sellers. For standalone direct merchants utilizing Razorpay purely as a technology gateway (not a marketplace), 194-O TDS withholding does not apply. Razorpay provides automated compliance reports for GST and TDS reconciliation.
6. What is Razorpay's standard bank payout settlement schedule in India?
Standard Razorpay accounts operate on a T+2 business day settlement schedule, where funds captured on day T are automatically transferred to your registered Indian bank account (via NEFT/RTGS/IMPS) on the second business day. For eligible high-volume merchants, Razorpay offers 'Early Settlements' and 'Instant Payouts' 24x7x365 for a nominal fee of 0.15% to 0.30%.
7. How are refunds handled on Razorpay and are processing fees returned?
When you issue a full or partial refund via the Razorpay dashboard or API, the customer receives 100% of their refund amount. However, in accordance with card network and gateway regulations, Razorpay retains the original processing fee and associated GST. Processing fees are non-refundable.
8. What are Razorpay International Payment fees and currency conversion rules?
Accepting international credit cards (USD, EUR, GBP, AUD, etc.) through Razorpay incurs a 3.00% + ₹3.00 processing fee plus 18% GST. Settlement occurs in Indian Rupees (INR) converted at the prevailing daily wholesale exchange rate with a standard forex markup. Exporters must maintain an Import Export Code (IEC) and obtain an electronic Foreign Inward Remittance Statement (e-FIRS) provided via Razorpay.