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Karnataka shopkeepers reject UPI amid GST evasion notices

India

Karnataka's tax department has sent GST evasion notices to traders whose UPI payments crossed ₹40 lakh a year, making many small shop owners in Bengaluru anxious.
Some have even taken down their UPI QR codes, worried about compliance as officials use payment data from the past few years to check for issues.

Some shopkeepers sticking with UPI, others have switched back to cash

Tax Commissioner Vipul Bansal called the notices a preliminary measure, encouraging traders to explain their side if transactions are legit.
The move has split opinion—some shopkeepers are sticking with UPI since customers prefer it, while others have switched back to cash.
Despite all this, Karnataka still handles nearly 8% of India's UPI transactions, and people online are debating whether this crackdown helps or just makes things harder for everyone.