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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Unruly scenes witnessed in Punjab Assembly
Chandigarh (PTI): The Punjab Assembly on Friday witnessed high drama on Friday after Congress MLA Sukhpal Singh Khaira made an allegedly objectionable remark against Chief Minister Bhagwant Mann during an intense argument over the alleged use of mobile phone in the house by the legislator.
During the one-day special session of the Punjab Vidhan Sabha here, Mann accused Khaira of using a mobile phone when Speaker Kultar Singh Sandhwan was reading out an official resolution on the revision of wages.
After rising from his seat, the chief minister pointed to the speaker, claiming that Khaira is busy on his mobile phone and urged him to ask the Congress MLA what Sandhwan had said about the resolution.
The speaker then asked Khaira to maintain order in the house and listen to the resolution carefully.
Mann then asked Khaira, "Why don't you go out and then use it (mobile phone)," which led to a strong verbal altercation during which the opposition MLA hurled an accusation against the chief minister. Meanwhile, the speaker appealed for order and insisted that the chair be addressed.
However, both Mann and Khaira continued arguing and could be seen pointing fingers at each other as the proceedings of the house were disrupted.
The AAP MLAs also rose from their seats with Finance Minister Harpal Singh Cheema condemning Khaira for his conduct and demanded action against him.
Cheema further alleged that Khaira "always tries to disturb the house" as he spoke about his conduct in the assembly.
The incident occurred as an official resolution on the revision of wages was presented at the special session by Labour Minister Tarunpreet Singh Sond who said it paid homage to labourers on the International Workers' Day.
"Workers are the axis of construction of the nation, the community, the state and society. Every construction project succeeds only through their blood and sweat," the resolution read.
As per the resolution, "The base rate of minimum wages for the working class in Punjab was last revised in the year 2012. Although the dearness allowance has continued to increase since 2012, there has been no increase in the base rate of minimum wages.
On this sacred occasion of May Day, in this special session of the legislative assembly, this house proposes to revise and increase the minimum wages of labourers and strongly recommends to the government to take a decision regarding the increase of minimum wages for workers, so that the contributions of the workers can be acknowledged." PRK
