SBI report: Tougher GST enforcement may hurt small businesses

Business Jul 23, 2025

SBI's latest report flags a problem: tougher GST enforcement may actually hurt small businesses.
In Bengaluru, some shop owners got hit with heavy tax notices just because their UPI payments were tracked.
SBI warns that if things get too strict, more businesses might ditch digital and go back to cash—undoing the progress made by GST.

Bank's advice to tax officials

The bank says GST only works if it helps everyone, especially smaller traders who don't have big resources.
Too much pressure or paperwork could make things worse instead of better.
SBI suggests tax officials should focus on being fair and supportive, so small businesses aren't pushed out of the formal economy.