ONDC to cut its discount funding by up to 75%; tells players not to adjust GST for discounts

The Open Network for Digital Commerce (ONDC) will cut financial incentives for network participants by up to 75% starting July 2024, reducing the maximum monthly incentive from Rs 3 crore to Rs 2.5 crore and setting a quarterly cap of Rs 6 crore. The new structure significantly lowers incentives for food & beverages and grocery categories while introducing small top-up incentives for exceeding volume thresholds. ONDC aims to boost e-commerce penetration in India with support from major organizations and foundations.