GST Notice Alert: State Department Sends Notices to Massive 13000 Street Vendors Using UPI, GPay, Paytm Payments
GST Notice Alert: State Department Sends Notices to Massive 13000 Street Vendors Using UPI, GPay, Paytm Payments
The Karnataka State Commercial Taxes Department has issued Show Cause Notices to 13,000 Small taxpayers, including street vendors, for not paying GST. During an analysis done by the state government, it was found that many small taxpayers did not have a GST registration number.
In a recent case, a small business owner in Bengaluru received a GST Show Cause Notice under section 63. He received Rs 31.9 lakhs via Paytm during the financial year 2022-23. Since the amount was over Rs 20 lakhs, he should have registered under the GST laws. But he did not register under GST, and therefore, the GST department sent him a notice, demanding GST tax of Rs 5.75 lakhs (Rs 2.88 lakh CGST + Rs 2.88 lakh SGST).
If you are an owner of a small business and you receive payments through online platforms like UPI, BHIM, Paytm, PhonePe, etc., then you need to be careful. The GST department is issuing notices if the income you received through these platforms exceeds Rs 20 lakhs for services or Rs 40 lakhs for goods in a year.
Many small business owners are not registered under GST, and yet their income has crossed the mentioned turnover limit. The GST authorities are sending a show cause notice to such businesses.
Section 22 of the CGST Act requires all suppliers to be registered under GST if their aggregate turnover in a financial year is more than Rs 20 lakhs.
Since payment made digitally through UPI, Paytm, BHIM, etc., can be easily tracked by the government, you cannot escape the eyes of tax departments. The tax authorities are actively monitoring your expenses and income.
It is important for the supplier to obtain a GST registration number if their aggregate turnover limit is more than the prescribed limit. In case you fail to do the same, you will get into legal trouble and will have to face interest and a penalty, as online payments are traceable.