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GST notices sent to 7,000 unregistered vendors across Karnataka

Deccan Herald

The Commercial Taxes Department in Karnataka has issued GST notices to approximately 7,000 unregistered small vendors across the state.

Here is a summary of the key points:

  • Who received notices: The notices were sent to vendors, including those selling exempted goods like milk, vegetables, and unbranded food items.

  • Reason for the notices: The department identified these vendors as likely exceeding the GST registration threshold (₹40 lakh for goods, ₹20 lakh for services) based on UPI transaction data, specifically digital inflows.

  • Legal basis: The notices were issued under Section 63 of the GST Act, which allows for the assessment of tax liability for those who should have registered but did not.

  • Current status: No tax demand has been raised yet. The primary goal is to encourage these vendors to get GST registration.

  • Relief and compliance: The Chief Minister of Karnataka has stated that notices will be withdrawn for vendors who can prove they only deal in exempted goods. Additionally, arrears may be waived for those who promptly register and comply with the regulations.