GST enforcement should be balanced with sensitivity: SBI Research amid Karnataka UPI-GST row

New Delhi: GST enforcement should be balanced with sensitivity as aggressive scrutiny based on UPI transactions may drive small businesses back into the informal cash-based economy, SBI Research said on Tuesday amid reports that small merchants in Karnataka were preferring cash transactions due to GST notices.

Cautioning on the emerging challenges in GST, the SBI Research report said that while the indirect tax regime has laid the foundation for greater accountability and revenue generation, its long-term success will depend on ensuring empowerment of small traders, instead of penalising them.