Small Vendors in Distress Over GST Notices

Small scale traders and merchants in Karnataka are facing significant stress after receiving GST notifications from commercial tax authorities. These notices were issued following UPI transactions that exceeded Rs 40 lakh annually. The vendors are now appealing for the withdrawal of these notices and seeking leniency in the application of GST regulations for small-scale vendors.

The issue gained attention when reports surfaced that vendors in Bengaluru are increasingly refusing UPI payments, preferring cash transactions instead.

A Vendor's Plight

Shankar Gowda Hadimani, a vegetable vendor from Haveri, shared his distress after receiving a tax notice of ₹29 lakh from the Bengaluru Tax Office. He explained, "Since there are no GST rules on fruits and vegetables, I did not register for a GST number. But I got a notice to pay Rs 29 lakh in taxes for a business of over Rs 40 lakh..."

Association's Stand

Abhilash Shetty of the Karnataka Pradesh Street Vendors Association highlighted the challenges faced by small businesses, stating, "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."

Legal and Political Reactions

Advocate Shakuntala, representing the association, criticized the lack of awareness among vendors about their tax obligations. Meanwhile, BJP spokesperson Amit Malviya accused the Congress government of harassing small traders, calling the move "economic sabotage."