Latest news with #AbhilashShetty
NDTV
23-07-2025
- Business
- NDTV
Bengaluru Street Vendors Seek GST Relaxation After Notices Over UPI Turnover
Bengaluru (Karnataka): Small vendors and traders across Karnataka have raised serious concerns after receiving GST notices from the commercial tax department for UPI-based transactions exceeding Rs 40 lakh annually. They have requested that the government revoke notices, demanding a relaxation in the enforcement of these rules for small-scale vendors. Speaking on behalf of the vendors, a member of the Karnataka Pradesh Street Vendors Association, 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..." The association's legal representative, Advocate Shakuntala, echoed the sentiment, criticising the government for failing to educate small vendors about their tax obligations when registering their businesses. 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..." In Haveri, a vegetable trader named Shankar Gowda Hadimani shared his concern after receiving a ₹29 lakh tax notice from the Bengaluru Tax Office. He stated, "... 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 The officials have told me that if it is proven that I have done so much business in vegetables, the notice will be withdrawn..." The move to send GST notices for UPI transactions has come under fire from BJP. On June 16, BJP spokesperson Amit Malviya said, "Congress is destroying small businesses in Karnataka. In a recent mindless crackdown, Karnataka GST authorities have issued heavy-handed notices to small vendors under the pretext of GST evasion -- many running into lakhs of rupees. The data from UPI transactions is being weaponized to raise arbitrary tax demands. As a result, thousands of small traders in Bengaluru are now abandoning digital payments altogether. This is not just harassment -- it is economic sabotage. Under GST law, the burden of proof lies with the tax officer -- not the trader. Why then is the Congress government unleashing this coercion on those who form the backbone of our economy? This is nothing but a desperate attempt to fund their freebie culture. And yet, Rahul Gandhi has the audacity to claim he stands with small businesses." (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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Business Standard
23-07-2025
- Business
- Business Standard
Karnataka vendors demand relief after GST notice over UPI transactions
Small vendors and traders across Karnataka are urging the government to withdraw recent Goods and Services Tax (GST) notices issued over UPI transactions exceeding ₹40 lakh per annum, warning that stringent enforcement of the rule threatens the viability of their small-scale businesses, news agency ANI reported. Under GST regulations, shops must register themselves if their annual turnover exceeds ₹40 lakh, while service providers face a ₹20 lakh threshold. Vendors appeal for relief Abhilash Shetty, of the Karnataka Pradesh Street Vendors Association, told ANI, 'Small businesses run with a margin of 5 to 10 per cent. The tax (GST) along with other things like penalty, comes to 50 percent, and it is not possible for the vendors to pay such a huge tax. We request the government to intervene and give relaxation to small vendors in this matter.' Advocate Shakuntala, the association's legal representative, criticised the government for not educating small vendors about their tax obligations at the time of registration. She stated that if taxes were to be levied, people should have been informed in advance. She added that vendors ought to have been made aware of taxes on the sale of goods and revenue generation. Karnataka vegetable vendor served ₹29 lakh GST notice In Haveri, a vegetable trader named Shankar Gowda Hadimani received a ₹29 lakh tax notice from the Bengaluru Tax Office. He stated that, since there were no GST rules applicable to fruits and vegetables, he had not registered for a GST number. However, GST officials reported that his total digital transactions over four years totalled ₹1.63 crore, triggering a GST liability. He added that officials had assured him the notice would be withdrawn if it was proven that the business was indeed related to vegetables. 'No UPI, only cash' Neighbourhood vendors and small roadside stall owners in Bengaluru are reverting to cash transactions to avoid issues with tax authorities. Instead of displaying QR codes, many now place signs stating 'No UPI, only cash,' as reported by The Economic Times. Stall owners also said they fear harassment by tax officials or even eviction from their vending spots by city authorities. As a result, many have ceased using digital payments. ITR filing requirements for small vendors Small vendors in India must file an Income Tax Return (ITR) if their annual income exceeds the basic exemption limit of ₹2.5 lakh. Those with business income under ₹50 lakh who choose the presumptive taxation scheme should use ITR-4 (Sugam). Under this scheme, vendors declare a fixed percentage of their turnover as profit, simplifying compliance.
Hindustan Times
23-07-2025
- Business
- Hindustan Times
Karnataka small businesses rally against GST demands on UPI transactions after tax notices spark anxiety: Report
Small-scale business owners and market vendors across Karnataka are expressing alarm after being issued Goods and Services Tax (GST) notices by state tax authorities. The concerns have been triggered by a recent tax department directive, which sent notices to traders whose total UPI (Unified Payments Interface) payments surpassed ₹40 lakh in a single year. Affected vendors are urging the state government to cancel these notices and reconsider enforcement policies for small businesses and traders, news agency ANI reported. Bengaluru: Vendors urge the government to cancel GST notices, citing thin profit margins and lack of guidance on tax liabilities as major concerns.(REUTERS/Representational image) ALSO READ | Bengaluru UPI panic explained: Why small traders are saying 'no to QR, yes to cash' Representing the Karnataka Pradesh Street Vendors Association, Abhilash Shetty highlighted the precarious nature of small vendors' profitability. He pointed out that typical margins barely reach 10 per cent, making it impossible for these businesses to cope with the combined weight of tax and penalties, which, he claimed, can amount to half their total turnover. Shetty called on state officials to intervene, emphasizing that without relief, many vendors may be unable to continue operating, as quoted by ANI. ALSO READ | Karnataka launches 'Know GST' drive to calm UPI-linked tax panic among traders: Report Adding to the outcry, the association's legal counsel, Advocate Shakuntala, also spoke to reporters about the matter and criticized governmental authorities for not adequately informing new business registrants about their tax liabilities. She questioned why educational efforts were not made during the registration process, arguing that a lack of guidance had left many vendors unprepared for tax regulatory compliances. A vegetable seller in Haveri shared his ordeal after being slapped with a tax notice for ₹29 lakh by Bengaluru tax officials. He explained he had not registered for GST, believing that fruits and vegetables were exempt from such tax rules. "The officials have told me that if it is proven that I have done so much business in vegetables, the notice will be withdrawn…" he said in the report. ALSO READ | Former CM Bommai slams Karnataka govt over GST burden on small traders, urges for relief Political slugfest ensues in Karnataka The opposition BJP seized upon the situation, attacking the Siddaramaiah-led Congress government in the state for what they described as an indiscriminate crackdown against small traders. Karnataka Deputy Chief Minister DK Shivakumar addressed the allegations and said the BJP was trying to shift the blame of GST notices to small traders on the state government. 'The BJP government at the Centre had fixed a turnover limit of ₹40 lakh for the GST registration and had also intimated the state governments to follow it. The GST office has issued notices to approximately 14,000 traders, including vendors of tender coconuts, flowers, and vegetables. Our leader, Rahul Gandhi, had opposed the GST in the past. The BJP must withdraw the GST notices issued to small traders. The CM will discuss with the officials and take necessary steps on the GST notices issued,' he said, as quoted by the agency. (With inputs from ANI)
Time of India
23-07-2025
- Business
- Time of India
‘If taxes are being imposed…': Bengaluru street vendors want GST relaxation; notices received after UPI transactions crossed Rs 40 lakh
The issue came to light after it was reported that vendors in Bengaluru are increasingly declining UPI as a payment mode, asking customers to pay in cash instead. (AI image) Bengaluru GST row: Small scale traders and merchants in Karnataka have expressed grave apprehension following the receipt of GST notifications from the commercial tax authorities regarding UPI transactions surpassing Rs 40 lakh per year. They have appealed to the authorities to withdraw these notices and sought leniency in implementing these regulations for small-scale vendors. The issue came to light after it was reported that vendors in Bengaluru are increasingly declining UPI as a payment mode, asking customers to pay in cash instead. A vegetable vendor from Haveri, Shankar Gowda Hadimani, expressed his worries after receiving a tax notice of ₹29 lakh from the Bengaluru Tax Office. According to an ANI report he explained, "... 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..." Abhilash Shetty, representing the Karnataka Pradesh Street Vendors Association, was reported as saying, "Small businesses run with a margin of 5 to 10 percent... by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Why Crypto CFDs May Suit Your Portfolio IC Markets Learn More Undo 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, the legal counsel for the association, supported these concerns whilst criticising the authorities for not properly informing small vendors about their taxation responsibilities during business registration. She remarked, "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..." BJP has criticised the issuance of GST notices for UPI transactions in Karnataka. BJP spokesperson Amit Malviya stated, "Congress is destroying small businesses in Karnataka. In a recent mindless crackdown, Karnataka GST authorities have issued heavy-handed notices to small vendors under the pretext of GST evasion -- many running into lakhs of rupees. The data from UPI transactions is being weaponized to raise arbitrary tax demands. As a result, thousands of small traders in Bengaluru are now abandoning digital payments altogether. This is not just harassment -- it is economic sabotage." He further added, "Under GST law, the burden of proof lies with the tax officer -- not the trader. Why then is the Congress government unleashing this coercion on those who form the backbone of our economy? This is nothing but a desperate attempt to fund their freebie culture. And yet, Rahul Gandhi has the audacity to claim he stands with small businesses." Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
23-07-2025
- Business
- Time of India
Bengaluru street vendors seek GST relaxation after receiving notices for UPI transactions crossing 40 lakh turnover
Small vendors and traders across Karnataka have raised serious concerns after receiving GST notices from the commercial tax department for UPI-based transactions exceeding Rs 40 lakh annually. They have requested that the government revoke notices, demanding a relaxation in the enforcement of these rules for small-scale vendors. Speaking on behalf of the vendors, a member of the Karnataka Pradesh Street Vendors Association, 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..." 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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..." In Haveri, a vegetable trader named Shankar Gowda Hadimshared his concern after receiving a ₹29 lakh tax notice from the Bengaluru Tax Office. Live Events He stated, "... 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..." The move to send GST notices for UPI transactions has come under fire from BJP. On June 16, BJP spokesperson Amit Malviya said, "Congress is destroying small businesses in Karnataka. In a recent mindless crackdown, Karnataka GST authorities have issued heavy-handed notices to small vendors under the pretext of GST evasion -- many running into lakhs of rupees. The data from UPI transactions is being weaponized to raise arbitrary tax demands. As a result, thousands of small traders in Bengaluru are now abandoning digital payments altogether. This is not just harassment -- it is economic sabotage. Under GST law, the burden of proof lies with the tax officer -- not the trader. Why then is the Congress government unleashing this coercion on those who form the backbone of our economy? This is nothing but a desperate attempt to fund their freebie culture. And yet, Rahul Gandhi has the audacity to claim he stands with small businesses."
