Quick Summary
In a major push to widen the tax base and boost GST collections, the Bengaluru government has started leveraging Unified Payments Interface (UPI) data to detect unregistered traders who have crossed the GST threshold but failed to comply with registration requirements. The commercial taxes departme
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FAQ :
The government is using UPI data to identify unregistered traders who have exceeded the GST registration threshold (Rs 40 lakh for goods, Rs 20 lakh for services) but have not complied with tax laws.
Approximately 14,000 traders have received notices for not having GST registration despite significant UPI payment receipts.
The aim is to widen the tax base, boost GST collections, ensure fairness in the tax system, and bring informal sector players into the formal tax net.
Yes, some small businesses, like kirana stores and bakeries, are anxious about potential retrospective tax demands and the burden of lump-sum payments.
The department clarifies that scrutiny focuses on those receiving Rs 40 lakh or more via UPI. Traders who received personal payments are encouraged to explain their situation, and genuine cases will be treated with sensitivity.
The government has assured fair and transparent enforcement, offering hearing opportunities and allowing genuine cases to pay arrears in instalments if they cannot pay in one go.
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