Archive · 18 Jul 2025
Bengaluru Shops Shift to Cash Amid GST Concerns
In Bengaluru, some small shops are now asking customers to pay with cash instead of using apps like UPI.
They are worried about getting in trouble with the tax people, who have been sending notices to some businesses.
The government wants to collect more taxes, and is looking at all the ways businesses get paid.
Experts say the tax officials have to prove the shop is making a lot of money before they can ask for taxes.
The state wants more money to pay for welfare programs and fix roads.
Bengaluru vendors are increasingly refusing UPI payments.
Vendors cite fear of tax scrutiny from the GST department.
Tax notices, based on digital payment records, have been issued to some businesses.
The GST is applicable on all forms of consideration, not just UPI.
Karnataka's government aims to increase tax collections.
- Who
- Small vendors and shopkeepers in Bengaluru.
- What
- Vendors in Bengaluru are increasingly refusing UPI payments.
- When
- Recently, following the issuance of tax notices.
- Where
- Bengaluru, India.
- Why
- Due to fear of tax scrutiny and potential GST implications.
Vendors
Government/GST Department
Taxation Concerns
Vendors
Fear of increased scrutiny and potential tax liabilities due to UPI transactions.
Government/GST Department
The GST department maintains that UPI is only one method of receiving consideration and is not the sole reason for tax demands.
- Location
- Bengaluru, India
- Affected Businesses
- Small vendors and shopkeepers
- Payment Shift
- From UPI to cash
- Reason
- Taxation concerns
- Taxing Authority
- GST department
- Tax Limit for businesses
- ₹40 lakh
