The Panipuri seller with Rs. 40 lakhs revenue receives summons from the Tamil Nadu Goods and Services Tax ( GST ). The government has tracked the UPI payments of the panipuri seller.
The Tamil Nadu GST Department based its investigation on transaction reports obtained from prominent payment gateways, Razorpay and PhonePe. These reports indicated that the panipuri seller received payments for the outward supply of goods and services exceeding the threshold limit mentioned under the GST Act.
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The department noted that the vendor failed to register under the GST Act despite surpassing the turnover threshold. Under Section 22(1) of the GST Act, any supplier engaged in the supply of goods or services is required to obtain GST registration if their aggregate turnover exceeds Rs. 20 lakh in a financial year.
The government has been working to widen the tax base and control revenue leakage. Leveraging digital payment data is one such measure to bring more businesses under the tax net. While this ensures greater compliance, it also raises questions about the challenges faced by small vendors in understanding and following tax regulations.
The GST notice issued is just a summons and not a demand order. The vendor was called to submit his side before the department about the transactions.
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