India, July 22 -- In Bengaluru, UPI payments had become ubiquitous across sectors, from local vendors and roadside stalls to small retail businesses. But now, signs reading 'No UPI, Only Cash' are appearing across roadside stalls, food carts, and local stores.

The reason? A growing fear of steep tax demands triggered by the very digital transactions that once symbolised progress.

(Also Read: Bengaluru's street vendors abandon UPI, prefer cash. Tax heat to blame? - Report)

The panic began after Karnataka's Commercial Taxes Department used UPI transaction data to identify 14,000 unregistered traders who had allegedly received digital payments beyond the threshold that mandates Goods and Services Tax (GST) registration.

Under the law, bu...