Authors: Assistant Professor Dr. Prathima V, Professor Dr. N Nagaraja
Abstract: The rapid pace of digitalization, particularly since the implementation of the Goods and Services Tax (GST) and the widespread adoption of Unified Payments Interface (UPI), has brought about a major shift in the nature of the informal business in India. Street vendors are increasingly getting integrated into the formal economy via smartphone payments, QR code payments, mo-bile banking and digital applications, which are largely cash-based and unofficial transactions. This change has given rise to smart vendors; those who actively involve themselves in the digital commerce world and financial systems. The study aims to explore the potential of UPI and artificial intelligence (AI) in promoting digital financial inclusion and GST integration for street vendors and small-scale business owners in India. The study is conceptual and analytical and is based on the latest research on GST, AI, digital payments and financial inclusion, Government publications and literature. It discusses the ease of GST com-pliance with AI tools such as automated bookkeeping, AI chatbots, fraud detection, predictive tax analytics, and smart account-ing apps, as well as the push towards formal taxation by digital payment platforms. The study revealed that numerous obstacles exist, such as lack of knowledge regarding the implementation of GST, lack of digital skills, cyber security concerns and limited access to technology. The findings indicate that both UPI and AI technologies have driven a major rise in financial accessibility and digital transaction engagement, and can potentially make compliance easier, help boost transparency, and minimize filing mistakes.
