Quick Summary
A small vegetable vendor from Haveri, Karnataka, is facing an unexpected tax burden after receiving a GST notice demanding Rs 29 lakh, triggering fresh concerns among small traders over digital transactions. Shankargouda, who runs a modest vegetable stall near the Municipal High School grounds, has been accepting UPI and digital wallet payments from his customers for the past four years. However, he was stunned to learn that the GST Department has calculated Rs 1.63 crore worth of transactions,
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FAQ :
The vendor received a GST notice demanding Rs 29 lakh because tax authorities appear to have treated his UPI and digital wallet transactions, totalling Rs 1.63 crore, as taxable business income.
No, fresh and unprocessed vegetables are exempt under the current GST structure.
Small traders are concerned that their digital transaction footprints, even for tax-exempt goods, are being misinterpreted by authorities as taxable income, leading to surprise GST demands.
Many vendors are removing QR codes and switching to 'cash only' to avoid the fear of tax scrutiny and hefty GST demands.
The department acknowledged the shift to cash and clarified that tax applies to all income, regardless of payment mode, warning of strict action against underreporting income.
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