Bengaluru vendors reject UPI, opt for cash

India Jul 16, 2025

Bengaluru's small vendors are saying no to UPI payments and sticking to cash.
The reason? Many just got hit with GST notices based on their digital payment data from 2021-22, with some facing tax demands running into lakhs for allegedly crossing turnover limits.

Misleading data, say vendors

Vendors fear these tax demands could lead to harassment or even eviction, so they're playing it safe with cash.
Critics point out that digital payment data can be misleading—personal transfers might get counted as business income.
Meanwhile, politicians are urging the state government to step in and sort out the confusion before more small businesses get caught up in red tape.