The “Know GST” program has been launched by the Karnataka government to educate street sellers and small company owners about the GST regulations. The “Know GST” program is designed to help small firms, especially those who accept UPI digital payments, comply with GST.
After several vendors received letters of GST registration for UPI transactions over ₹40 lakh annually, this initiative was developed. Many of these vendors were not aware that the GST legislation potentially impose tax responsibilities on digital payments.
Digital Payments Trigger Unexpected GST Registrations
Over the past month, hundreds of street vendors and small shopkeepers in Bengaluru and nearby cities reported receiving automatic GST registration notices, despite having no formal business registration or understanding of tax thresholds.
Digital platforms track payments made through UPI and QR codes, which can lead to exceeding GST registration limits, even for informal vendors. Many traders, who thought digital payments were a safer and more transparent option than cash, now feel penalised.
Workshops, Helplines, and Door-to-Door Support
The ‘Know GST’ campaign will include the following, Campaigns for district-specific awareness. Toll booths and assistance centres -free numbers. Free helplines for enquiries about GST. Reaching out door-to-door in important markets. Cooperation between local governments and trade associations
To increase accessibility for micro-entrepreneurs, Commercial Tax Department officials are also producing educational films and written manuals in Kannada and other regional languages.
Trade Bodies Push Back on ‘Digital Burden’
While the campaign is intended to support traders, several trade unions and market associations have criticised the state for what they call “tax harassment of the poor.”
“Digital transactions were encouraged during COVID. Now, the same system is being used to slap GST on vendors who barely make ends meet,” said Rajeev Gowda, a market leader in Chickpet.
They’ve demanded a higher GST threshold for digital-only businesses and exemptions for informal sector vendors using UPI.
Towards a More Inclusive GST Regime?
With the rise of digital payments in small businesses, experts say the GST system needs urgent reforms to protect nano-entrepreneurs. The Know GST campaign, while a step forward, may only offer relief if paired with broader policy changes.
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