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.”
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Businessman burnt to death as moving car catches fire in Noida
Noida (PTI): A 46-year-old businessman was burnt to death after his moving car caught fire in Uttar Pradesh’s Gautam Buddha Nagar district, police said on Tuesday.
According to police, the victim was identified as Rajkumar Singhal, who was engaged in the paint business. The incident occurred late on Monday night near Sorkha village under the Sector 113 police station area.
Station House Officer Krishna Gopal Sharma said Singhal was driving towards Parthala Chowk when his vehicle suddenly caught fire for reasons yet to be ascertained.
Singhal was unable to get out of the car and died in the blaze, the SHO said.
Fire tenders reached the spot after receiving information, but the car had already been gutted, police said. The body has been sent for post-mortem examination and an investigation is underway.
Police suspect the presence of paint or other inflammable material in the car may have caused the fire to spread rapidly.
