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More states ask for UPI merchant data
It might be time to carry change again. Your next chai tapri or snack stop might just nudge you for cash instead of flashing a QR code.
Driving the news
Following Karnataka’s lead, four more states– Tamil Nadu, Gujarat, Andhra Pradesh and Uttar Pradesh–have asked UPI apps and payment aggregators to share merchant transaction data.
- The goal?: identify businesses with an annual turnover above Rs40 lakh who haven’t registered for GST
Karnataka alone has flagged over 14,000 merchants for possible GST violations based on UPI activity.
- Notices are being prepared and sent
The backlash begins
Merchant associations in Karnataka have threatened strikes.
- Many merchants have already shifted back to cash payments
- Merchants may also split transactions across multiple accounts and QR codes to avoid scrutiny
Tax officials, however, believe that customers will go where UPI is accepted.
Expert speak
Fintech executives warn this could undercut India’s digital payments push.
- Bankers and UPI app makers argue that UPI data alone can’t paint a full picture
Many items sold, like fruits, vegetables, and homemade snacks, are GST-exempt
Dig deeper
$400 million lifeline for Tata Digital
Tata Sons is cashing in on TCS dividends to reboot Tata Digital, which houses BigBasket, 1mg and more, and revive its click-to-cart ambitions.
Dividends, not dilution
With external capital hard to cart, Tata has chosen to self-checkout.
- Tata Sons is backing Tata Digital with a $400 million infusion from its reserves, we were told
The funds come from a hefty Rs 32,700 crore dividend payout by TCS in FY25.
- No fresh stake sale in TCS, this recharge is all internal
Big cart, slow start
High hopes and heavy carts — but the receipts are still pending.
- Envisioned in 2021, Tata Digital set out to unify grocery, health, fashion and more under one platform
But Blinkit and Zepto have since outpaced BigBasket in both speed and scale.
- Despite $2 billion poured in over three years, the venture is yet to find its e-commerce edge
Leaders in transit
New faces at the top, but the mission stays the same.
- Tata Digital’s founding CEO, Pratik Pal, stepped down in February 2024 after efforts to unify the platform fell short
- Successor Naveen Tahilyani exited in May 2025, 15 months in, for a global role at Prudential.
As rivals raise fresh capital, Tata Digital is banking on this reset to regain momentum.
Dig deeper
Govt defends takedown orders on X
The internet has changed...so should the law!
- That's what Solicitor General Tushar Mehta told the Karnataka High Court
What's happening
Solicitor General Tushar Mehta came out in defence of India’s online content regulation regime during a hearing in the Karnataka High Court.
Appearing in the case filed by X Corp (formerly Twitter), Mehta argued that the internet is no longer the niche communication tool it once was...it’s now a full-blown public square that demands a different regulatory lens.
- Mehta said that unchecked virality on platforms like X can spread falsehoods at scale and which can have real-world consequences
He noted that traditional standards of judicial oversight may not be enough to deal with the speed and magnitude of online misinformation.
Tell me more
Mehta emphasised that digital platforms have displaced older forms of media, altering how citizens consume news.
"People don't even read newspapers, they use phone," he told the court, suggesting that older media regulations were no longer sufficient.
AI in the dock
Mehta also cautioned against blind reliance on generative AI, saying tools like ChatGPT can “hallucinate”.
“ChatGPT creates tailor-made cases,” he noted.
The bench, led by Justice M Nagaprasanna, agreed: “Too much dependence on AI is dangerous… The most dangerous thing to do is to use ChatGPT to write the judgment.”
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