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

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

A vegetable vendor was asked to pay a GST notice of Rs 29 lakh by the Income Tax Department for a transaction of Rs 1.63 crore during the last four years. This shopkeeper used to bring fresh vegetables directly from the farmers and sell them at his shop.

GST notice increased difficulties

Joint Commissioner of Commercial Tax Meera Suresh Pandit told news agency PTI that whatever GST tax notices are being sent are not the final tax. Those who are being sent the tax can claim it with their documents.

He said that if the reply is satisfactory or the matter does not fall under the ambit of Goods and Services Tax under the GST Act, then the notice will be withdrawn.

Traders threatened to go on strike

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