Quick Summary
A Bengaluru Paying Guest (PG) accommodation has come under fire after a notice demanding rent payment strictly in cash to avoid a 12% GST on digital transactions went viral on social media. The image, first shared on Reddit, warned tenants that online payments would attract the GST, sparking frustration and fuelling an intense online debate. The move has angered tenants who prefer secure, traceable payment methods such as UPI or bank transfers. Many have raised concerns over possible tax evasio
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FAQ :
The PG demanded cash payments to avoid charging tenants a 12% GST on online transactions.
Tenants were concerned about the lack of secure, traceable payment methods, potential tax evasion by landlords, and the difficulty in obtaining proof of payment for deposit, disputes, and HRA claims.
Some legal experts suggested that imposing GST solely on digital transactions without issuing a valid GST invoice could be unlawful and potentially a tax violation.
No, this is part of a growing trend in Bengaluru where shopkeepers and landlords are increasingly favouring cash to avoid GST-related scrutiny.
The Karnataka government is reportedly considering amendments to the Karnataka Rent Act to address unregulated rental agreements, impose heavier penalties for non-compliance, and improve tenant protection.
Landlords risk hefty fines if caught evading GST obligations by forcing cash-only payments.
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