Rising Rent Woes In Bengaluru PGs, Cash-Only Rule Leaves Tenants Frustrated Amid GST Fears

Bengaluru: If you are living in a Paying Guest (PG) accommodation in Bengaluru or planning to move into one, things might get difficult. Many PG owners are now asking tenants to pay rent only in cash.

The reason? They want to avoid paying Goods and Services Tax (GST) that applies to online transactions. If rent is paid digitally, they are asking tenants to pay an extra 12 percent GST — making rent more expensive.

Viral Photo Sparks Debate

A Reddit user named SKDgeek recently shared a photo of a notice stuck on the wall of a PG in Bengaluru. The message clearly said:

"Rent must be paid in cash. If paid online, 12 percent GST will be added."

This photo and post have gone viral, with over 30,000 views. Many social media users are angry and are discussing legal action against this practice.

One user said the government should look into this, while another suggested there’s no issue in paying rent with GST if a proper bill is given. A few even advised paying digitally with GST and demanding a GST invoice, which the PG owner cannot deny.

Similar Trend Among Shopkeepers

This is not the first time cash-only payments have become common in Bengaluru. A few weeks ago, many local shopkeepers and stall owners had also started refusing UPI payments, demanding only cash.

Their reason?

They were afraid of GST raids after receiving payments through digital methods. To avoid any action or penalties, they put up signs saying “Cash Only”.

Fear Spreads to PG Owners

Now, PG owners are also scared that if they accept rent via UPI or bank transfer, they may also face surprise GST inspections.

To avoid any risk, they too have started asking for cash-only rent payments, which is creating problems for tenants who prefer online payments for safety and tracking.