The Department of Commercial Taxes held an open conference on Monday to promote transparency and spread awareness about Goods and Services Tax (GST) registration, which many vendors across Bengaluru will now be required to undergo.
The rules, which have prompted some vendors to switch to a cash-only system, apply regardless of the mode of transaction and are based solely on the annual aggregate turnover of the business.
Officials clarified that opting out of UPI transactions will not shield businesses from GST compliance, as data from previous years’ UPI payments has already been collated by the department, providing insight into actual turnovers.
According to Meera Suresh Pandit, Joint Commissioner of Commercial Taxes at the Divisional GST Office in Mangaluru, businesses with an annual aggregate turnover exceeding Rs 40 lakh for the supply of goods or Rs 20 lakh for services are mandatorily required to register under GST. Businesses with turnovers below Rs 1.5 crore (goods) or Rs 50 lakh (services) in the previous financial year may opt for the Composition Scheme, which offers lower tax rates and simplified compliance.
“The 18% rate is not fixed,” Pandit assured. “It may be reduced after document verification.”
However, several vendors expressed apprehensions about the new compliance burden.
“We can do the registration,” said Raghu, owner of SLN Enterprises in Malleswaram. “But now we’ll need to maintain proper books of account. That means hiring an accountant and bearing extra expenses ourselves. The government says it’s collecting taxes from consumers, but this kind of cost won’t be reimbursed.”
Raghu also alleged unofficial hurdles in the process. “They claim registration is free, but there will be complications. Without bribes, applications won’t be processed. Most officers demand an extra Rs 2,000 to Rs 5,000 before approving registration.”
He added that leasing complications further hamper the process. “If the business premises are on lease, they demand landowners’ documents. But most owners are reluctant to share these.”
