6000 GST notices issued on UPI transactions in this state, panic among traders, threat to take to the streets against the action

GST Notice: A vegetable shopkeeper was asked to pay the money by sending a GST notice of Rs 29 lakh for transactions worth Rs 1.63 crore during the last four years by the Income Tax Department.

Karnataka GST Notice: GST notices are being continuously sent by the Income Tax Department to those businessmen in Karnataka who are doing transactions through UPI. So far, about 6000 GST notices have been sent on the basis of UPI transaction data. While the traders' organization threatened to go on strike against this, the Income Tax officials are calling it the right step according to the law.

A vegetable shopkeeper was asked to pay the money by sending a GST notice of Rs 29 lakh for transactions worth Rs 1.63 crore during the last four years by the Income Tax Department. These shopkeepers used to bring fresh vegetables directly from the farmers and sell them at their shops.

GST notice increased difficulties

Commercial Tax Joint Commissioner Meera Suresh Pandit told news agency PTI that the GST tax notices being sent are not the final tax. The people to whom the tax is being sent can claim it with their documents.

She said that if the reply is satisfactory or if the goods and services tax does not come under the purview of GST Act, then the notice will be withdrawn.

Traders threatened to strike

On the other hand, traders have threatened to take to the streets against the GST notices being sent on the basis of UPI transactions. Many traders associations in Karnataka have called for a strike on the 25th and appealed to boycott UPI transactions.

Reacting to reports of traders' strike, Meera Suresh Pandit clarified to news agency PTI that when the transaction limit crosses Rs 20 lakh in the service sector and Rs 40 lakh for goods, it becomes mandatory to register your business under the GST Act. Along with this, you also have to declare your turnover.