Upi The traders of Karnataka have expressed concern over the issuance of about 6000 notices of GST demand on the basis of transactions done through. However, a senior tax officer has described the move within the purview of the law. Merchant organizations have also called for a strike on sending notices demanding GST payment on the basis of UPI transactions. Joint Commissioner of Commercial Tax Department Meera Suresh Pandit said in a conversation with PTI that notices sent to traders are not final tax demand and traders receiving notice have the right to answer them with associate documents. He said that these notices will be withdrawn if the answer is found satisfactory or entitled to exemption under the GST Act.
Traders will strike on 25 July
On the issue of notices sent to traders on the basis of UPI transactions, several traders of Karnataka have called for their members to boycott UPI transactions. He has also called for a strike on 25 July in protest against this notice. On the proposed strike and call for only cash transactions, the Senior Tax Officer said, “When a person crosses Rs 20 lakh for services or an annual transaction limit of Rs 40 lakh for goods, it is mandatory to register under the GST Act and declare his business.”
What did the tax officer say
The tax officer said, “Registration gives the businessman the right to collect tax from customers and pay the government. He said that the department cannot personally identify every businessman who avoids registration. Instead, the service analysis branch located at the headquarters of the department used reliable sources such as UPI transactions to identify potential defaulters.
When registration is required under GST law
Pandit said, “If a person has done a transaction of Rs 20 lakh for services in a year or more than Rs 40 lakh for goods in a year, then he becomes responsible for registration under GST Act.” The official said that the department does not know that such a firm is completely exempted, partially taxable or completely taxable. In such a situation, proposals are made to register them and pay taxes, interest and fine. Pandit said, “If there is a complete exemption from goods or services like tuition fees in business, then there is no need for registration. If the answer is satisfactory, the notice will be withdrawn and the action will be closed with zero demand.”
Appeal for traders to contact the department
He also tried to remove the doubts prevailing among the business communities regarding GST demand notice. He said, “Some innocent traders are misleading in the hope that every notice will be withdrawn. Some are being misled. But if they want relief under the legal provision, then I request them to contact the department. We will guide them as per the law.” He told the traders that no purpose will be fulfilled by calling for a bandh and they should speak peacefully.
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