Bengaluru GST row: Small scale merchants and retailers in Karnataka have expressed grave apprehension following the receipt of GST notifications from the industrial tax authorities concerning UPI transactions surpassing Rs 40 lakh per 12 months. They’ve appealed to the authorities to withdraw these notices and sought leniency in implementing these rules for small-scale distributors.The difficulty got here to gentle after it was reported that distributors in Bengaluru are more and more declining UPI as a fee mode, asking prospects to pay in money as a substitute.A vegetable vendor from Haveri, Shankar Gowda Hadimani, expressed his worries after receiving a tax discover of ₹29 lakh from the Bengaluru Tax Workplace.Based on an ANI report he defined, “… Since there are not any GST guidelines on fruit and veggies, I didn’t register for GST quantity. However I bought a discover to pay Rs 29 lakh in taxes for a enterprise of over Rs 40 lakh… The officers have instructed me that whether it is confirmed that I’ve achieved a lot enterprise in greens, the discover might be withdrawn…”Abhilash Shetty, representing the Karnataka Pradesh Avenue Distributors Affiliation, was reported as saying, “Small companies run with a margin of 5 to 10 p.c… The tax (GST) together with different issues like penalty, involves 50% and it isn’t potential for the distributors to pay such an enormous tax with this. We request the federal government to intervene and provides rest to the small distributors on this matter…”Advocate Shakuntala, the authorized counsel for the affiliation, supported these considerations while criticising the authorities for not correctly informing small distributors about their taxation duties throughout enterprise registration.She remarked, “If taxes are being imposed, why have been they not educated first?… Once they took the registration, they need to have been made conscious in regards to the taxes on promoting of products, income…”BJP has criticised the issuance of GST notices for UPI transactions in Karnataka. BJP spokesperson Amit Malviya said, “Congress is destroying small companies in Karnataka. In a current senseless crackdown, Karnataka GST authorities have issued heavy-handed notices to small distributors underneath the pretext of GST evasion — many operating into lakhs of rupees. The information from UPI transactions is being weaponized to boost arbitrary tax calls for. Because of this, 1000’s of small merchants in Bengaluru are actually abandoning digital funds altogether. This isn’t simply harassment — it’s financial sabotage.”He additional added, “Underneath GST regulation, the burden of proof lies with the tax officer — not the dealer. Why then is the Congress authorities unleashing this coercion on those that kind the spine of our financial system? That is nothing however a determined try and fund their freebie tradition. And but, Rahul Gandhi has the audacity to say he stands with small companies.”