Bengaluru’s Digital Nightmare: UPI Use Triggers GST Notices For Street Vendors

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Bengaluru's Digital Nightmare: UPI Use Triggers GST Notices For Street Vendors

In Bengaluru, thousands of street vendors are facing GST notices despite their daily earnings being less than 800 rupees, which is significantly below the 40 lakh rupee annual income threshold for GST. The notices were triggered by their use of UPI for transactions, turning their participation in the Digital India campaign into a tax issue. This has led to a political dispute, with the Karnataka government blaming the Centre’s GST policy and the BJP accusing the state’s tax department. Worker unions allege that UPI platforms may have shared vendor data without consent. The Federation of Street Vendors has called for a statewide protest on July 25. A union representative stated, "what my demand is wave of all the whatever the penalty and whatever the demand you are doing prior to the 2025 and now onwards whenever they are registering, you make them to register their establishment and then claim their DIMA, whatever the tax."

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