365telugu.com online news,Hyderabad, July 20, 2025: The Unified Payments Interface (UPI), which spearheaded India’s digital payment revolution, has encountered an unexpected setback in Bengaluru.
Once ubiquitous among small vendors and large stores alike, UPI transactions are now seeing a significant shift towards cash payments. The primary reason for this surprising trend, it appears, is the notices being issued by GST (Goods and Services Tax) officials.
‘No UPI… Only Cash’ – A New Trend in Bengaluru..
In Bengaluru, often dubbed India’s IT capital and startup hub, unusual sights have emerged over the past few days. Small shops, street vendors, pushcarts, and even tea stalls are displaying handwritten boards proclaiming “No UPI… Only Cash.
” Merchants are removing QR codes and refusing digital payments, requesting customers to pay in cash instead. This development has become a significant talking point in the digital payments market.
The GST Impact: Small Businesses in Panic..
The main catalyst for this sudden change is the GST notices being issued by the State Commercial Tax Department. Officials are identifying businesses whose annual turnover through UPI exceeds ₹40 lakh (for supply of goods) or ₹20 lakh (for supply of services). These businesses are then being issued notices, instructing them to register for GST and pay taxes.
Several factors are fueling the panic among small businesses..
Fear of Data Leakage: Merchants fear that their financial activities, transparent through UPI transactions, are fully visible to the government. This creates apprehension about potentially having to pay large sums in taxes in the future.
Lack of Awareness on Registration: Many small business owners lack proper understanding of the GST registration process and its regulations, further escalating their anxiety.
Fear of Harassment: Some vendors are concerned about potential harassment from tax authorities. They believe that conducting business purely in cash, without digital records, might help them avoid these issues.
Officials’ Clarification vs. Merchants’ Stance..
Officials, on their part, clarify that notices are only being issued to businesses whose annual turnover exceeds the prescribed GST limits, assuring them there’s no need to panic. They state that the issue can be resolved by submitting accurate details. However, businesses in Bengaluru remain resolute in their decision, opting to continue their operations on a cash-only basis.
Impact on Digital India Vision..?
This development in Bengaluru could pose a significant challenge to the government’s efforts to promote digital transactions across the country. A widespread shift by small businesses towards cash transactions might hinder the Digital India initiative.
It remains to be seen how the government will address this issue and whether UPI usage will regain its momentum. The big question is, will this trend also spread to other cities?