Bengaluru, which has always been at the forefront of digital payment, now the difficulties regarding UPI payment are increasing. Now those QR code stickers are disappearing in the streets of the city, which made digital payment easier. In his place, there are now printouts or hand-written notes at the shops, on which it is clearly written- "Not upi, only cash!" Small shopkeepers are now reluctant to take payment from UPI. Many have completely stopped using payment apps. After all, what has happened that Bangalore, who is called the champion of Digital India, is now returning to cash?
Why are shopkeepers not taking payment from UPI?
According to an Economic Times report, many small shopkeepers of Bengaluru have reduced the use of UPI. Some have stopped it completely. Shankar, a shopkeeper from Hormavu (did not mention the full name), said, "I do business of about 3,000 rupees a day. I just have a little profit. It is difficult for me to take payment from UPI." Many shopkeepers like Shankar say that transactions from UPI are now becoming a headache for them. But the question is, why are shopkeepers facing so much problem with UPI?
Actually, GST notice is the root of this whole case. In Bengaluru, thousands of small traders, including those selling roadside food, have received notices from the GST department. In some cases, these notices are worth millions of rupees. Vinay K., Joint Secretary and Lawyer of Bangalore Street Vendors Association. Srinivas said that the shopkeepers are scared for the strictness of GST officials and fear of tax notice. Many shopkeepers are also afraid that due to these notices they may have to vacate their shops. This is the reason why they are now giving preference to cash instead of UPI.
What does GST law say?
Under the GST law, if a merchant sells goods and his annual earnings are more than Rs 40 lakh, then it is necessary to register GST. If there is a business of giving service, then this limit is 20 lakh rupees. The Commercial Tax Department says that they have issued notices on the basis of UPI transactions data from 2021-22. According to the department, many traders earned more than Rs 40 lakh through UPI, but they neither got GST registered nor paid tax. In such a situation, the department has sent notice to these traders and asked them to register and submit tax.
