Hyderabad, July 16 -- Small businesses and street vendors in Bengaluru are abandoning digital payments and reverting to cash transactions.

The move comes after a recent GST compliance crackdown by the Commercial Taxes Department.

Earlier, authorities issued directives mandating GST registration for businesses with annual turnovers exceeding Rs 40 lakh (for goods) or Rs 20 lakh (for services).

After notices, Bengaluru vendors abandon UPI payments

The tax department has collected UPI transaction data from 2021 to 2025 to identify businesses that crossed the GST threshold without registering.

Notices are now being sent to these merchants. The step has forced many to hide or remove their QR codes to avoid scrutiny.

Vendors fear that com...