Bengaluru, renowned as India’s IT epicentre, is witnessing a surprising comeback of cash-only transactions. Across the city, from street food stalls to corner shops, vendors have begun displaying signs reading, “No UPI, only cash.” This trend emerged after thousands of small, unregistered businesses received unsettling GST notices. Many face demands for unpaid taxes running into lakhs, based on their UPI transaction history.
Bengaluru retailers not accepting UPI, Why?
Advocates like Vinay K. Sreenivasa of the Street Vendors Association told “The Times of India” that these notices have sparked fear of harassment and even civic eviction. As a result, cash feels safer and less traceable. Under GST rules, sellers must register if turnover exceeds Rs 40 lakh (goods) or Rs 20 lakh (services), and authorities insist notices targeted only those with UPI data indicating such earnings. However, former Karnataka tax commissioner H. D. Arun Kumar warns that digital data alone shouldn’t determine turnover. State leaders are under pressure to meet lofty revenue targets while continuing to fund welfare programs. This digital-payment backlash highlights the growing tension between taxation and everyday survival.
