Pay in notes: Bengaluru’s small vendors shun UPI over tax notice fears
Bengaluru: Once a frontrunner in digital payments, Bengaluru is reportedly witnessing a sudden shift back to cash as small vendors—spooked by recent GST notices from the Commercial Taxes Department—begin refusing UPI transactions. QR code stickers are being replaced with signs reading “No UPI, only cash,” as traders fear tax scrutiny and demand customers pay in physical currency instead.
The department recently stated that businesses with an annual turnover exceeding Rs 40 lakh for goods or Rs 20 lakh for services must register under the Goods and Services Tax (GST) regime and pay the applicable taxes, as reported by Deccan Herald on Wednesday.
The directive has triggered panic among small, unregistered vendors—such as bakeries, tea stalls, cigarette kiosks, and gift shops—now facing tax scrutiny. Many are reportedly hiding UPI QR codes or removing them entirely, while others are stuck in a dilemma as most customers no longer carry cash.
Authorities have obtained data from UPI service providers regarding payments received by businesses from 2021–22 to 2024–25. Businesses found to have received more than Rs 40 lakh via UPI payments during this period—without GST registration or tax payments—are now being served notices.
The impact is visible across Bengaluru’s streets and markets. From food street stalls to gift shops, vendors say the tax enforcement fails to reflect their operational realities. While many operate on high turnover, their profit margins remain razor-thin due to rent, supply costs, and wages. They argue that this policy would threaten their survival.
A juice stall cashier near Indiranagar said they were told to remove UPI scanners but were unsure how to proceed. “Most customers don’t carry cash. We’re stuck,” DH quoted the cashier as saying. In RR Nagar, a stationery shop employee echoed similar concerns: “We use both UPI and cash. But with this rule, we either lose customers or lose money.”
A bakery and tea stall owner expressed frustration over the policy’s failure to account for ground realities, noting, “My sales look high, but most of it goes into rent, supplies, and staff. If I’m taxed on this, I’ll have to remove my UPI scanner and go cash-only.”
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Karnataka govt directs municipal corps to regulate, prohibit pigeon feeding
Bengaluru (PTI): The Karnataka government has issued directions to municipal corporations across the state to regulate and prohibit feeding pigeons in public places, citing serious public health concerns.
Deputy Secretary to Government V Lakshmikanth has written to the Urban Development Department requesting it to issue directions to the Greater Bengaluru Authority (GBA) and all municipal corporations to take immediate steps to implement the measures.
In an official note dated December 16 issued by the Health and Family Welfare Department and released to the media on Wednesday, the department said uncontrolled feeding of pigeons in public places has resulted in large congregations of birds, excessive droppings and serious health concerns, particularly respiratory illnesses linked to prolonged exposure to pigeon droppings and feathers such as hypersensitivity pneumonitis and other lung diseases.
ALSO READ: Chinese GPS tracker found on seagull near Karwar Coast
"The commissioner, the Greater Bengaluru Authority and the Commissioners and chief officers of other municipal corporations shall take necessary action to mitigate the causes of dangerous disease spread by pigeon and enforce specified guidelines in their respective jurisdiction," the note said.
According to the department, these include a prohibition on feeding pigeons or causing pigeons to be fed in areas where it may cause nuisance or pose a health hazard to the public. Pigeon feeding shall be permitted only in designated areas in a controlled manner, subject to certain conditions.
"The designated areas may be selected in consultation with stakeholders. The responsibility for upkeep of the designated areas and compliance to the directions shall be taken up by some charitable organisation or an NGO. The feeding in designated areas shall be permitted only for some limited hours in the day," it said.
The note further stated that authorised officers of local authorities shall issue on-the-spot warnings and may impose fines for violation of the order, or lodge complaints to prosecute offenders under Sections 271 (Negligent act likely to spread infection of disease dangerous to life) and 272 (Malignant act likely to spread infection of disease dangerous to life) of the Bharatiya Nyaya Sanhita.
It also directed local authorities to conduct public awareness campaigns, including the display of signboards, banners and digital messages, explaining the health hazards associated with pigeon droppings and feathers, the content of the regulatory directions and penalties for violations, and alternative humane methods of bird conservation that do not endanger public health.
