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- Karnataka Vegetable Vendor Gets ₹ 29 Lakh GST NOTICE Over UPI Transactions: Digital Payments Under Scrutiny
Bengaluru8 minutes ago
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This seller named Shankar Gowda made UPI transactions worth Rs 1.63 crore in the last four years, on the basis of which the GST department has sent this notice.
A vegetable seller has received a GST notice of Rs 29 lakh in Haaveri, Karnataka. This seller named Shankar Gowda made UPI transactions worth Rs 1.63 crore in the last four years, on the basis of which the GST department has sent this notice.
Repeated digital transactions suspected GST officers, so that notice was sent to them to pay ₹ 29 lakh. After these incidents, small shopkeepers in cities like Bangalore and Mysore are leaving UPI and emphasizing cash transactions.
Vegetable seller said- I fill income tax returns every year
Shankar Gowda of Haaveri runs a vegetable shop near Municipal High School for the last four years. Most of their earnings are from UPI and digital wallets. Shankar Gowda says, I buy and sell fresh vegetables from farmers, which are free from GST. I fill income tax returns every year. How can I pay such a big tax?
There is no GST to sell vegetables purchased from farmers
Cleartax and GST do not seem to GST on fresh, non -processed vegetables according to the rules if the sellers take directly from the farmers and sell it at the shop. Many times the authorities send notices as a business turnover.
Fear of notice increased among small traders
Thousands of small traders in Karnataka, such as roadside dining shops, carts and small stores, are receiving such GST notices. The reason is that the transactions through UPI are now on the radar of the GST department. If the annual turnover is more than Rs 40 lakh (for those selling goods) or 20 lakh rupees (for servicemen), then GST registration is necessary. Many traders are inadvertently crossing this limit, from which notices are being received.
Traders returning to cash leaving UPI
In many cities of Karnataka, shopkeepers are removing the QR code and imposing cash signs only. Hotel owners, PG operators and auto drivers are also leaving UPI in Mysore. A hotel owner said, it is difficult to keep every transaction records. Cash is better to avoid GST notice. ” The GST department has warned that cash or UPI will have to pay tax on every earning.
Siddaramaiah said- will raise the issue before the central government
Karnataka Chief Minister Siddaramaiah has said that he will raise this issue in front of the Central Government and GST Council. He assured the traders that small traders would not be disturbed.