
Bakeries, condiments and small enterprises protest against GST notices on July 24
D.B. Pratap Shetty, president of the association, expressed concern over the GST notices to small-scale businesses like condiments stores, bakeries, milk sellers, vegetable vendors, and others, and said these notices had created a sense of fear among traders.
These notices have been issued based on transactions in their UPI payment gateway linked accounts.
'Most of our transactions — over 95% — are through digital payments,' Mr. Shetty said, and warned that if their issues are not sorted out, they will launch a State-wide protest against the UPI payment system. 'We will begin a campaign to break UPI scanners as a mark of protest,' he warned.
He alleged that traders with annual transactions between ₹20 lakh and ₹40 lakh are being served notices, which goes against the standard GST norms.
While demanding the withdrawal of such notices, the association has demanded that the government allow traders with turnover exceeding ₹40 lakh per year to settle their dues under the presumptive tax scheme by paying a flat 1% tax based on available records.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
22 minutes ago
- Time of India
Banks rush for VRR amid call rate spike
Mumbai: The central bank's variable rate repo (VRR) auction for ₹50,000 crore was oversubscribed on Wednesday, as banks rushed to borrow at the central bank window amid a spike in overnight money market rates above the policy repo rate for the second day in row. The Reserve Bank of India aims to keep the weighted average call rate (WACR) around the policy repo rate, which currently stands at 5.50%. Explore courses from Top Institutes in Please select course: Select a Course Category Finance Others others Degree Project Management Public Policy Data Science healthcare Management Healthcare CXO MBA Leadership MCA Data Science Product Management Technology Cybersecurity Artificial Intelligence Design Thinking PGDM Operations Management Data Analytics Digital Marketing Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Fintech & Blockchain India Starts on undefined Get Details Skills you'll gain: Duration: 9 Months IIM Calcutta SEPO - IIMC CFO India Starts on undefined Get Details WACR, which acts as the operative rate for monetary policy transmission, closed above the policy repo rate for the first time in this fiscal at 5.62% on Tuesday. It rose further and closed at 5.73% on Wednesday. Meanwhile, the weighted average TREPS (tri-party repo dealing system) rate closed at 5.72% on Wednesday, marginally higher compared with the previous day's 5.69%, CCIL data showed. The weighted average rate at the two-day VRR auction was 5.58%. Overnight rates had increased because of the narrowing in liquidity surplus following the GST outflows over the weekend and Friday's variable rate reverse repo rate auction, where banks parked ₹2 lakh crore with the RBI. Liquidity surplus in the banking system currently stands at ₹2.4 lakh crore, close to the RBI's target of 1% of NDTL. "The spike in rates is because the assessment of daily requirements by the (bank treasury) dealing rooms had gone haywire due to sudden outflows," said Alok Singh, head of treasury, CSB Bank . "Dealers likely thought that once they put funds in VRRR, they would be able to cover any requirement in the market below that rate, but because tax outflows may have happened from some banks, they found a deficit in the overnight cash. So, then they had to borrow funds at whatever rate it was available, hence the spike," Singh said. Following the spike in call rates, banks also borrowed funds from the RBIs marginal standing facility (MSF) for ₹13,273 crore on Tuesday, highest since May 1 this year, RBI data showed. After the liquidity infusion via variable rate repo (VRR) auction, overnight rates softened slightly, but they were still above the standing deposit facility (SDF) rate. In June, overnight rates were below or at par with SDF rate. Liquidity adjustment facility or LAF corridor has the marginal standing facility (MSF) rate, currently at 5.75%, as its upper bound (ceiling) and the SDF rate, currently at 5.25%, as the lower bound (floor), with the policy repo rate in the middle of the corridor.


Time of India
35 minutes ago
- Time of India
NGOs and schools in Bengaluru question GST notices on UPI payment data
Bengaluru: Trade bodies Wednesday welcomed the state govt's assurance that it would not pursue tax notices issued over the past 2-3 years for arrears on exempted goods and services, but the move failed to enthuse many as fears of a backlash remain. "Why should we sit and explain to the tax officials who have recklessly issued notices to us?" a person asked. Many pointed out that tax demand notices were also issued to orphanages for the donations they received and to educational institutions over charges for extra-curricular activities such as conducting karate classes. TOI looks at two instances that raised the concerns of the stakeholders. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru We are doing service: NGO A Bengaluru-based NGO that has been serving orphaned children for over 82 years received a GST notice asking for its transaction details for the past three years. The notice shocked the social service organisation, which insisted it is an end-user, not a business entity, and therefore not liable under GST. "I received the notice about 10 days ago," said a representative of the NGO, who requested that both his and the organisation's names not be disclosed. "The officials even visited our organisation, saw what kind of work we are doing and despite that, they issued the notice." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Could Be the Best Time to Trade Gold in 5 Years IC Markets Learn More Undo The NGO, located in South Bengaluru, which functions on donations, has now been asked to submit transaction records for three financial years. The representative confirmed that the notice was based on UPI and RTGS payments received by the NGO. He stressed that the organisation is not involved in any business activities. "We are an end user. Whatever purchases we make in the market, we pay tax on them. We don't claim input tax credit. There is no question of evasion. We are income tax payers and have always followed all rules." The representative said: "I am an entrepreneur. But I work here on an honorary basis. When I saw the notice, I was surprised. As an entrepreneur, I didn't find any mistake in what we're doing. At the very least, the officials should check the organisation's website to see what work is being done. But they didn't bother. They just issue notices left and right." The representative said he has already replied to the notice. "I have given a reply explaining everything. I don't know if they will now ask for books of accounts. If they do, I may have to go and submit those too. But this is harassment. We are doing free service." He questioned the very basis of the notice. "From 1942 till now, there was never any sales tax for us. After GST came into force in 2017, there was no notice either... Suddenly we get this now." He believes this kind of scrutiny demoralises donors and volunteers. "These kinds of things discourage people from donating. We don't sell anything. We don't do business. We are a direct consumer, not a B2B entity. Still, they treat us like a business." School: Why tax notice for co-curricular activities? A private school in Mysuru has found itself grappling with a GST notice which the institution authorities say misinterprets charges collected for co-curricular activities. "We've always known that GST applies to uniforms, books, and similar supplies. But now, they're questioning us over karate fees and other co-curricular activities that are part of the academic syllabus," said the institution secretary and member of an association of schools. He said the school received a notice three months ago, following which they submitted all audit reports and a detailed explanation. "There's a standard format in which they asked for documents, and we complied. But since then, there's been no further communication," he added. The secretary explained that the school treats sports, karate, and other similar sessions as part of the academic curriculum, not as separate services. "If such training is conducted independently, the trainer may come under GST. But in our case, these activities are integrated with schooling. Unfortunately, even when education is exempt, GST seems to be added in the back end." "The tax treatment of school-related services remains inconsistent. Some aspects of the GST policy are fair, others create confusion. Co-curricular activities like sports, and transportation should not be taxed when they are linked to regular schooling," he added, urging the authorities to issue clearer guidelines.


The Hindu
an hour ago
- The Hindu
World Food India event to begin on September 25
The Union government wants to ensure that at least one food item produced in India reaches the dining tables of every home in the world, Union Minister for Food Processing Industries Chirag Paswan said on Wednesday (July 23, 2025), adding that the World Food India event will be a step towards that goal. The fourth edition of the annual event, being held from September 25 to 28 at Delhi's Pragati Maidan, is organised by the Ministry to showcase the developments in the food processing sector. Speaking at a curtain raiser event on Wednesday (July 23, 2025), Mr. Paswan said that this is set to be the largest edition yet, with participation expected from over 90 countries, more than 2,000 exhibitors, and tens of thousands of stakeholders spanning the entire food value chain from farm to fork. Acknowledging that the industry's concerns about the Goods and Services Tax were 'right', Mr. Paswan vowed to be a bridge between the industry and the GST Council.