Akki Yadav
July 13, Bengaluru: Following the issuance of GST notices to small companies around Karnataka, such as tea shops, bakeries, salons, and hotels, tax advisers and GST specialists have advised traders to act quickly in order to avoid fines and interest. The notifications, which are based on UPI transactions that total more than Rs 40 lac annually, have caused small business owners to become extremely concerned.
Experts explained that the Commercial Tax Department has examined the transaction data of companies who take UPI payments, even if they are not registered under GST. In accordance with GST legislation, notices have been sent to individuals whose yearly digital transactions total more than Rs 40 lac for products or Rs 20 lakh for services.
“Answer notices right away,” say GST specialists
According to M Chandrashekhar of Regina GST Consultants in Bengaluru, “GST notice recipients must respond within the allotted time frame.” Although it is not necessary to pay taxes right away, providing correct transaction information, either online or in person at the GST office, can assist prevent fines.
He went on to say that not every business transaction might be subject to GST. Determining which goods are subject to GST can greatly lower tax obligations. Bread and other necessities are exempt from taxes, however packaged snacks are subject to 5% GST.
