Participants at a meeting organized by the Ministry of Commercial Taxes in Bengalur on Monday. | PHOTO CREDIT: SUDHAKARA JAIN
Little merchants and entrepreneurs who have reached UPI transactions under the last four years under the lens of commercial taxes on non -payment of tax and services tax (GST) can only be retrieved if the state and central governments agree to the solution.
While the Ministry has learned to issue more than 10,000 companies based on UPI transactions, it is difficult for the government to give up fines/interest or tax burden, the department officials say.
Representative Minister DK Shivakumar claimed that the number of notifications could be about 14,000, and stated that the state would write a center to withdraw the announcement and blame the BJP for the current problem.
“Both governments have to decide on the GST Council for the future procedure, because it is a state and central GST,” said the clerk, adding that the trade bodies and associations could ask the government for the inability of traders to pay Dani retrospectively.
Commissioner for commercial tax Meera S. Pandit a meeting organized by the Ministry of Commercial Taxes in Bengalur on Monday. | PHOTO CREDIT: SUDHAKARA JAIN
Based on information from Phonepe and Paytm, traders offering goods and exceeding 40 ₹ Lakh in UPI transactions per year and those who offer services and exceeding 20 ₹ in transactions per year. Sources said Pay Google transactions must still be assessed.
“Since the tax liability may be marked as a previous four years, the notification was issued in 2021-2022 and by January 2025, when the ministry received data,” explained a higher trading tax officer.
On Monday, officials also communicated with anxious small traders who came to clarify their doubts and explained the reason for issuing the announcement.
“The announcement is a way of communication or intimation. Traders do not have to worry. If exempt goods are handled, the notification will be downloaded. The department will hear from traders and companies will be assessed before the tax demand,” said Commissioner Commissioner for commercial tax Meera S. Pandit.
Liberated goods include vegetables, fruits, flowers, milk, non -branded or unpacked food metro, craft products, gasoline, diesel and liqueur. If the trader sells in addition to the exempted goods in his store, GST will only apply to these goods, the Ministry clarified.
Regarding 18% of GST demand raised in the notifications, the official explained: “On the basis of documents provided on transactions and other information, the final tax demand could reduce. The demand may be reduced, but not only after the demand is issued.”
She pointed to similar exercises performed in Gujarat, Tamil Nadu and Andhra Pradesh. “Although the announcement has asked traders to answer within seven or 10 days, a sufficient amount of time would be provided. Three comments will be sent and the officials will also call the phone. The assessment will be based on the best judgment and reality.
Meanwhile, after the outrage of traders, the ministry changed the format for issuing notifications. While the initial announcement provided details of transactions, possible tax liabilities of 18% of GST, interest and fine, they are currently issued by traders, indicating them from a transaction of over 40 ₹ Lakh, which requires registration according to GST mode.
Published – 21 July 2025 9:21 IS IS
