Before multiplying a shop's receipts by an MDR percentage, check the account category. A business can look small from the street while its payment account is classified differently. A QR stand does not tell you the classification by itself.
The official FAQ links the P2PM exemption to monthly UPI-QR receipts up to ₹1 lakh. It describes transition to P2M after inward UPI credits exceed ₹1 lakh in three consecutive months. See questions 23–29. The new MDR framework is scheduled for 15/10/2026; our source check was on 19/09/2026.
Three months beat one dramatic receipt
Consider these hypothetical receipt records. They illustrate the threshold, not a real merchant's account or a bank's confirmed assessment.
| Record | Month A | Month B | Month C |
|---|---|---|---|
| Shop one | ₹92,000 | ₹1,08,000 | ₹98,000 |
| Shop two | ₹1,03,000 | ₹1,07,000 | ₹1,01,000 |
The first row contains one month above the threshold. It does not demonstrate the three-month condition. The second row does. Do not average the three figures: an average answers a different question from whether each consecutive month crossed a boundary.
Now imagine a ₹6,000 sale inside shop one's Month B. The large receipt deserves a record, but its size alone does not decide the account's category. Avoid confusing the per-payment threshold with the monthly classification check.
Build a small receipt worksheet
Create one row per month with these fields:
- Period shown on your provider's statement.
- Qualifying inward UPI receipts, as the provider defines them.
- Recorded merchant category and the date you checked it.
- Provider clarification needed, such as treatment of a refund or reversal.
Use statements rather than a rough total of notifications. If your business accepts payments through more than one setup, ask how the provider evaluates that arrangement. The public FAQ does not answer every aggregation or adjustment question, so do not quietly choose whichever total produces the preferred result.
A useful message is: “Please confirm my current P2PM/P2M category, the receipt periods you monitor, and how you treat reversals. If my category changes, please confirm when the change applies.” Keep the reply with your worksheet.
Avoid the annual-turnover shortcut
Do not multiply ₹1 lakh by twelve and call the result a published annual-turnover exemption. That substitutes your arithmetic for the stated test. Also keep this check separate from other tax or registration obligations; the article is not deciding those obligations for your business.
Once the category is confirmed, the MDR calculation guide becomes useful. If a notice gives several dates, the law and start-date timeline helps you identify which one governs the announced implementation.