Bengaluru: The GST Council could consider granting amnesty from interest and penalties to small vendors who have been issued tax notices based on UPI transaction data, according to Kotraswamy M, commissioner of central taxes.
“If this issue is being flagged because there are so many taxpayers, the GST Council can take a call, giving amnesty to them from interest and penalty. So, there is a solution rather than making it a political issue,” he said at an awareness and grievance redressal seminar organised by Rotary Bangalore, JP Nagar.
The official’s statement comes after chief minister Siddaramaiah’s assurance that only traders with a turnover exceeding Rs 40 lakh on goods would be scrutinised, and old dues will not be enforced if vendors register for GST going forward.
Kotraswamy acknowledged discomfort and confusion caused by the GST notices among small business owners, attributing it to a lack of digital literacy and awareness. “Maybe their digital education is not adequate, they are not aware and feel that something bad has happened,” he said, adding that once they know what they are supposed to do, they will find nothing wrong with the notices.
The tax official also emphasised the importance of understanding legal requirements for businesses. “The transactions are captured in some way – digitally or through banking transactions, UPI or whatever. If somebody provided services with an annual turnover of more than Rs 20 lakh, or goods worth more than Rs 40 lakh, they are supposed to register themselves,” he explained.
Amrita Ranjan, principal commissioner of income tax, Bengaluru, confirmed that the department will continue to identify cases of tax violations. “… When the code works, it will work on a threshold and we will identify the cases,” she added.
What rules say
It is mandatory for businesses with annual sales of Rs 40 lakh or more for supply of goods, and Rs 20 lakh or more for the supply of services, to register for GST.
The Union govt also made it clear that it is not planning to levy GST on UPI transactions exceeding Rs 2,000, the finance ministry clarified in the Rajya Sabha last week after confusion caused by notices issued based on UPI data.
Source #TOI
