Bengaluru vendors dump UPI, return to cash to avoid GST crackdown
Small businesses and street vendors in Bengaluru are abandoning digital payments and reverting to cash transactions. The move comes after a recent GST compliance crackdown by the Commercial Taxes Department. Earlier, authorities issued directives mandating GST registration for businesses with annual turnovers exceeding Rs 40 lakh (for goods) or Rs 20 lakh (for services). After notices, Bengaluru vendors abandon UPI payments The tax department has collected UPI transaction data from 2021 to 2025 to identify businesses that crossed the GST threshold without registering. Notices are now being sent to these merchants. The step has forced many to hide or remove their QR codes to avoid scrutiny. Vendors fear that complying with GST could erase their already slim profit margins. Authorities have found nearly 65,000 merchants in Karnataka who received substantial UPI payments without GST registration. Some Bengaluru vendors were found using multiple UPI IDs under the names of the fami...