Latest news with #ShankargoudaHadimani
News18
7 days ago
- Business
- News18
Small Vendors, Big Bills: Blame Game Begins As Vegetable Sellers, Milkmen Fear Hefty GST Burden
The Karnataka government blamed the Centre's order in 2019 in the gazette to all governments regarding what should be done for those with a turnover of up to Rs 40 lakh A wave of distress is sweeping across Karnataka's small-time vendors and traders as Goods and Services Tax (GST) notices, demanding lakhs of rupees, continue to be issued based on digital transactions. The latest to be hit are a milk vendor in Bengaluru and a vegetable vendor in Haveri, both reeling from colossal GST demands, prompting the Karnataka government to shift blame squarely onto the Union government. Ravi, a milk vendor operating from Mariyammana Palya in Bengaluru, has been hit with a staggering Rs 23 lakh GST notice. This comes despite his reported turnover of Rs 59 lakh last year, with the notice specifically targeting transactions conducted within that period. Similarly, in Haveri, Shankargouda Hadimani, who runs 'Sairam Farm Fresh" as a vegetable vendor, has been slapped with a Rs 29 lakh GST demand. The department issued the notice via WhatsApp, citing over Rs 1 crore in digital transactions through Google Pay and PhonePe over the past four years. This has left Shankargouda in deep distress, especially as he primarily deals in fresh vegetables, which are largely GST-exempt. 'I have been in the vegetable and fruit business since 2021. When I first tried to get a GST number, I was told that vegetables and fruits don't require a GST number, and I could just continue my business as is. So, I obtained a municipal license, a vegetable license, and a fruit license, and started my business. It's been four years now, and I've already done business worth Rs 1.63 crore. Now, I've received a notice saying I need to pay a tax of Rs 29.63 lakh for that Rs 1.63 crore. 'How am I supposed to pay Rs 29 lakh? We are small vendors dealing in vegetables and fruits. If they ask us to pay Rs 29 lakh, where do we get it from? This is causing us a lot of trouble. I urge the authorities concerned and the government to resolve this issue. If they help us, we can continue our business smoothly. Otherwise, we will have to remove all UPI scanners and only deal in cash. This will also result in losses for me because my business will be reduced by half, leading to further difficulties." The Karnataka government has been quick to react, with deputy chief minister DK Shivakumar pointing fingers at the central government. 'The government of India has already issued an order in 2019 in the gazette to all governments regarding what should be done for those with a turnover of up to Rs 40 lakh. Why is BJP just watching this? This is their work. They should immediately withdraw this trouble caused to the poor," he said. Shivakumar also revealed the extent of the issue, stating, 'Already, the first notice has gone to 14,000 people. You all have noticed that Rahul Gandhi had already expressed his protest regarding this. The chief minister will call the officers and give whatever guidance is needed." Industries minister MB Patil echoed similar sentiments, highlighting the broad scope of GST. 'Now GST has been imposed on everything. Have they left out even bakeries from GST? So, there is confusion about that today. They will fix it today. They have put GST on bakeries and everything else, have they left anyone out? Have they left out even puffed rice? Whatever is packed, everything comes under it. Milk packets also come under it. Everything that is packed will come under GST. We are saying that the Union government is taking responsibility of all GST," Patil explained. However, former chief minister Basavaraj Bommai accused the state government of shying away from its responsibility in the matter. 'In the context of accepting payments like UPI, they have given notices. I had said that the chief minister should intervene. I saw the chief minister giving a statement that it is a central tax and concerns them. The chief minister is shying away from his responsibility. GST decisions are not taken by the Union government alone. The central and state governments, all the states together, take decisions in the GST Council. Since the chief minister is also the finance minister, I once again urge him to do this work," he said. In response to the growing concern, Siddaramaiah is scheduled to hold a crucial meeting on Wednesday with GST and commercial taxes officials to discuss the ongoing issue of notices being sent to small traders and vendors across the state. For now, the outcome of this meeting is eagerly awaited by the beleaguered small business community in Karnataka. Get breaking news, in-depth analysis, and expert perspectives on everything from politics to crime and society. Stay informed with the latest India news only on News18. Download the News18 App to stay updated! tags : bengaluru DK Shivakumar Goods and services tax GST karnataka Siddaramaiah view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
21-07-2025
- Business
- Business Standard
Why a Karnataka vegetable vendor got a ₹29 lakh GST notice for UPI sales
So what if you're not a registered GST taxpayer? The taxman might still be tracking you. Just ask the vegetable seller from Haveri, Karnataka, who received a GST notice demanding ₹29 lakh in taxes. The vendor, Shankargouda Hadimani, is not a registered GST taxpayer and has been running his small shop near the Municipal High School grounds for the past four years, Deccan Herald reported. Shankargouda mostly accepted payments through UPI and other digital wallets. According to the GST officials, his total digital transactions over four years added up to ₹1.63 crore, triggering a GST demand, the news report said. The notice from officials said, 'You have done transactions worth ₹1.63 crore in the last four years, for which, you have to pay GST of ₹29 lakh.' The tax notice has left Shankargouda in distress. He has now stopped accepting UPI payments altogether. Explaining his situation, he said, 'I procure vegetables from the farmers and sell the produce at the small shop I own near Municipal High School grounds. Nowadays, customers favour UPI payments. I promptly file I-T returns every year. I have records for the same. The GST officials have served a tax demand of ₹29 lakh. How can I pay such a huge amount?' Do vegetables attract GST? In India, fresh and unprocessed vegetables are exempt from GST, meaning they attract a 0 per cent tax rate. This exemption covers fresh, chilled, or unprocessed vegetables, whether sold by farmers or retailers. However, processed vegetables — such as those that are frozen, preserved, packaged, or labelled — may attract GST rates of 5 per cent or higher depending on the item and its preparation. For example, dried, pre-packaged, and labelled vegetables usually attract 5 per cent GST, while further processed products can face rates as high as 12 per cent. Small vendors in India must file an Income Tax Return (ITR) if their annual income exceeds the basic exemption limit of ₹2.5 lakh. Most small vendors, especially those with business income under ₹50 lakh and opting for the presumptive taxation scheme, should use ITR-4 (Sugam). Under this scheme, vendors can simply declare a fixed percentage of their turnover as profit, easing compliance. ITRs can be filed online through the Income Tax Department portal. For FY 24-25, the last date to file ITR is September 15, 2025, unless account audit is required.
India Today
21-07-2025
- Business
- India Today
Karnataka vegetable vendor hit with Rs 29 lakh GST notice. Here's why
A small vegetable seller from Haveri, Karnataka, has been left shocked after getting a huge tax notice. Shankargouda Hadimani, who runs a tiny vegetable shop near the Municipal High School grounds, has been asked to pay Rs 29 lakh under the Goods and Services Tax (GST) has been selling vegetables for the last four years. Most of his customers pay through UPI or other digital wallets. The trouble started when GST officials sent him a notice claiming he had made transactions worth Rs 1.63 crore in four years and now owes Rs 29 lakh as explains that he buys fresh vegetables directly from farmers and sells them in his small shop. He says most customers prefer UPI as they rarely carry cash these days. He also mentions that he files his income tax returns every year and keeps proper records. Now, he wonders how he can pay Rs 29 lakh, a sum he says is impossible for him to VEGETABLES ARE TAX-FREE UNDER GST According to ClearTax, fresh and chilled vegetables are not taxed under GST. If a vendor buys vegetables directly from farmers and sells them fresh and unprocessed, there is no GST on PAYMENTS UNDER THE SCANNERHowever, recently, the Karnataka GST department said they are keeping a close eye on traders who accept digital payments. On July 12, 2025, the department announced that traders whose total turnover crosses the limit for GST registration will get notices if they don't register and pay tax, reported The Economic the notices were sent, many small traders like Shankargouda stopped accepting UPI and now take only WARNS TRADERS AGAINST CASH-ONLY SALESIn a statement on July 17, 2025, the Karnataka GST department said they know traders are avoiding UPI and shifting to the department warned that tax applies on the total money received, whether by UPI or cash. Officials said they will take action to recover tax if traders try to hide their real income, the report VENDORS WORRIEDStories like Shankargouda's highlight how recent GST checks and notices are leaving small traders worried and feel caught in a tough spot, forced to choose between accepting digital payments and facing huge tax demands they cannot afford.- Ends
Deccan Herald
20-07-2025
- Business
- Deccan Herald
Vegetable vendor from Haveri gets Rs 29L tax demand
Shankargouda Hadimani, who has been running a vegetable shop near the Municipal High School grounds for the last four years, received payments mostly through UPI and other ewallet.
