Bengaluru Street Vendors Panic After GST Notices Over UPI Transactions In 'Lakhs'

Karnataka street vendors face unexpected GST notices for exceeding Rs 40 lakh in UPI transactions, despite dealing in tax-exempt goods.

The Karnataka Pradesh Street Vendors Association has strongly objected to the move.

Source : ABPLIVE AI

The street vendors across Karnataka are raising alarm over GST notices served for exceeding Rs 40 lakh in annual turnover through Unified Payments Interface (UPI) transactions. The vendors are urging the state government to intervene and provide relief, arguing that they were unaware their digital transactions would subject them to such tax burdens.

Fruit Vendor Gets GST Notice For Rs 29 L 

In Karnataka, several small traders have reportedly received GST demands from tax authorities despite dealing in tax-exempt goods like fruits and vegetables. Shankar Gowda Hadimani, a vegetable vendor from Haveri, was issued a notice from the Bengaluru Tax Office demanding Rs 29 lakh in taxes. 

He said, as per ANI, "Since there are no GST rules on fruits and vegetables, I did not register for GST number. But I got a notice to pay Rs 29 lakh in taxes for a business of over Rs 40 lakh... The officials have told me that if it is proven that I have done so much business in vegetables, the notice will be withdrawn."

Associations Demand Relaxation

The Karnataka Pradesh Street Vendors Association has strongly objected to the move. Member Abhilash Shetty said, "Small businesses run with a margin of 5 to 10 percent... The tax (GST) along with other things like penalty, comes to 50% and it is not possible for the vendors to pay such a huge tax with this. We request the government to interfere and give relaxation to the small vendors in this matter."

Advocate Shakuntala, representing the vendors' association, criticised the lack of awareness campaigns. She said, "If taxes are being imposed, why were they not educated first?... When they took the registration, they should have been made aware about the taxes on selling of goods, revenue."