No Separate Service Tax on Interchange Fee When Tax Paid on MDR: SC

Commissioner of GST And Central Excise Vs Citibank N.A. (Supreme Court of India) In a significant ruling, the Supreme Court of India addressed the service tax obligations concerning the Merchant Discount Rate (MDR) and interchange fees in the case of Commissioner of GST and Central Excise vs. Citibank N.A. The court upheld the position that service tax is only payable on the MDR and not separately on the interchange fee charged between the acquiring and issuing banks. The case originated from the contention of the Revenue that both the acquiring bank and issuing bank had distinct service tax o...