Namaste DOST!

This morning, while sipping tea and browsing through the online newspaper, a headline from the Indian Express caught my attention: "GST Notices Based on UPI Data". Upon reading further, I learned that Karnataka's Commercial Tax Department has started issuing notices to traders whose annual collections via UPI exceeded ₹40 lakh, yet they had not registered for GST.

You might wonder—"How does the department know? Isn’t the payment via QR code invisible?"

It’s true, QR payments seem invisible, but they leave a clear digital trail. When the government requests data from UPI companies like #PhonePe, #GooglePay, and #Paytm, these companies must provide it. This is exactly how the GST department identified traders who crossed the ₹40 lakh turnover threshold without registering, resulting in notices being sent.

🤔 Why Does the Street Vendor Get Notices, but You Don't?

A few days ago, a WhatsApp message humorously mentioned an employee lamenting that even a street vendor (selling "Puchkas") received a GST notice due to his UPI collections crossing ₹40 lakh annually, with cash collections unknown. The employee sarcastically remarked—"We're not earning as much as the Pani Puri vendor because we're not useless, we're 'used-less'!"

However, I believe this issue can be effectively resolved by improving our #BehaviouralSkills and leveraging #AISkills.

⚠️ Know the Real GST Rules:

1. Income Tax applies to your income, while GST applies to your turnover (total sales).

2. GST registration becomes mandatory once your turnover crosses:

• • ₹40 lakh for goods

  • ₹20 lakh for services

💡 What Can You Do to Stay Safe? Essential Tips:

1. Record Every Transaction: Account for every rupee, including money received through QR codes.

2. Monthly UPI Reconciliation: Regularly match your UPI statements with your accounts.

3. Timely GST Registration: Get registered as soon as your turnover crosses the prescribed limits.

4. Consider Composition Scheme: If you don’t want to collect GST separately from customers, opt for the composition scheme:

• • 1% GST for goods (turnover up to ₹1.50 crore)

  • 6% GST for services (turnover up to ₹50 lakh)

Remember, "No Concession Without Condition." Composition scheme comes with its own set of rules.

📖 Case Study – "Samosa Vendor Hit by GST"

Rajesh sells samosas from a street cart. In FY 2024-25, he earned ₹43 lakh through UPI and ₹12 lakh in cash but didn't register under GST, thinking "Who will catch me?"

Unfortunately, the GST department obtained data from #PhonePe and sent him a notice. Eventually, he had to pay GST on his ₹55 lakh turnover, along with interest and a 100% penalty. If Rajesh had registered on time and complied, his tax liability would have been much lower.

📲 Share & Spread Awareness!

Please share this important information with your friends, family, and acquaintances.

Have any questions? Drop a comment below—our GST DOST team is here to answer!

#GSTDOST #GST #UPI #TaxAwareness #FinancialLiteracy #DigitalPayments #GSTCompliance #GstCompositionScheme #GstRegistration #GstHindi