Will Your UPI Payment be Taxable? Explained | Faye D'Souza

The RBI has warned that UPI cannot remain free forever — and that sooner or later, users may have to pay charges for digital payments. This comes at a time when small traders in Karnataka are facing GST notices based on UPI transactions, sparking panic, boycotts, and political controversy. While the state has clarified these are not final tax demands, the issue has raised bigger questions: Will exempt goods like fruits and vegetables be wrongly taxed? And most importantly — will UPI, India’s proudest digital innovation, soon come with transaction charges? In this video, we break down the UPI vs GST controversy, the government’s clarifications, and RBI’s statement on why digital payments cannot be free forever. Watch till the end to understand what this means for traders, consumers, and the future of India’s digital finance story.