India, July 23 -- Small traders and street vendors across Karnataka are up in arms after receiving hefty GST notices for UPI-based transactions exceeding Rs.40 lakh in a financial year. The development has triggered widespread concern and outrage, with trader associations demanding that the government immediately revoke the notices and provide relief to small-scale businesses already struggling with tight profit margins.

One of the most alarming cases has emerged from Haveri, where a vegetable trader, Shankar Gowda Hadimani, said he was shocked to receive a Rs.29 lakh GST notice from the Bengaluru Tax Office. "I never registered for GST because fruits and vegetables are exempt under GST rules. But I've now received a notice demanding Rs....