Tax Department Urges Bengaluru Vendors Not to Avoid UPI Amid GST Notice Confusion

The Tax Department has urged Bengaluru vendors not to avoid UPI payments amid GST notice confusion, following instances where small businesses reportedly started shunning digital payments due to scrutiny over UPI transactions. Tax authorities clarified that legitimate UPI transactions are not grounds for harassment and are vital for the digital economy. They emphasized that scrutiny arises only from discrepancies or suspicious patterns, not mere volume. This advisory aims to allay fears among small traders and encourage continued adoption of digital payment methods, ensuring that genuine businesses are not adversely affected by enforcement actions targeted at fraud.