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What’s Happening?
In a sweeping move against tax evasion, the GST intelligence wing has identified over 60,000 unregistered businesses by analyzing UPI transactions. These firms have been operating without proper GST registration, despite conducting digital payments through platforms like Google Pay, PhonePe, and Paytm.
This action marks a paradigm shift in India’s tax surveillance strategy, where fintech trails are being used to plug revenue leaks.
📱 How UPI Became a Digital Footprint
Unified Payments Interface (UPI) transactions have exploded in volume, with over 13 billion transactions recorded in June 2025 alone. Authorities have now begun to cross-reference UPI-based income streams with GST filings.
Key Findings:
Thousands of small traders accepting digital payments without GSTIN
E-commerce sellers operating via WhatsApp, Instagram, or Shopify evading tax registration
Many businesses using QR codes at offline shops without tax compliance
🧾 How the Crackdown Works
The Directorate General of GST Intelligence (DGGI) is:
Tracking inflow of money through digital wallets and UPI IDs
Flagging high-volume digital merchants with no GST filings
Sending notices and provisional penalty orders
Coordinating with payment gateways and fintech partners for deeper data
💰 What This Means for Small Businesses
If you're a small trader accepting UPI payments, you're now on the radar.
Compliance is no longer optional. Whether you're a:
Local bakery
Boutique seller on Instagram
Freelance digital service provider
If your annual turnover exceeds ₹20 lakh, you're legally required to register under GST.
📊 Vizzve's Financial Insight:
As a digital finance platform, Vizzve advises:
Keep UPI income clearly documented
Register for GST if you cross threshold limits
Use automated invoicing tools to stay compliant
Leverage Vizzve's business tools to track and separate personal vs. professional UPI income
Pro Tip: Vizzve offers advisory support for GST registration and quarterly filing support to reduce the compliance burden for solopreneurs and MSMEs.
🚨 What’s Next?
More data mining expected from payment apps and fintechs
Cross-checks between income tax and GST filings
Expansion to platforms like Ola, Swiggy, Amazon sellers, freelancers, etc.
💬 FAQs
Q: Is GST registration required if I accept UPI but earn less than ₹20 lakh annually?
A: Not necessarily. But if you sell interstate or via e-commerce, you may still need to register regardless of turnover.
Q: Can I get penalized for past transactions?
A: Yes, if found non-compliant. Authorities can issue backdated GST liability notices.
Q: How can I stay compliant and manage my taxes?
A: Platforms like Vizzve can help you separate taxable income, automate reports, and file GST returns accurately.
📌 Final Thoughts
The GST crackdown using UPI is a clear signal: India’s tax system is becoming smarter, sharper, and digitally integrated. If you’re running a business—even a side hustle—make sure your financial systems are clean, compliant, and future-ready.
With Vizzve by your side, financial transparency is just a few taps away.
Published on : 18th July
Published by : SMITA
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