Kotraswamy M, commissioner of central taxes, cited that the GST council can acknowledge the grant of amnesty from interest and penalties to small vendors who have received the tax notices based on UPI transaction data.
“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 mentioned at an awareness and grievance redressal seminar organised via Rotary Bangalore, JP Nagar.
The GST official statement has arrived, with the assurance of Chief Minister Siddaramaiah, that only traders with a turnover of more than Rs 40 lakh on goods shall get scrutinised, and old dues will not be implemented if vendors register for GST going forward.
The uneasiness and confusion from the GST notices have been acknowledged by Kotraswamy, and it is attributed to an absence of digital literacy and awareness. “Maybe their digital education is not adequate, they are not aware, and feel that something bad has happened,” he mentioned, citing that once they understand what they need to conduct, then they will not discover anything wrong with the notices.
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The significance of comprehending the legal need for businesses has been outlined by the tax official.
“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 described.
Amrita Ranjan, principal commissioner of income tax, Bengaluru, ensured that the department will continue to determine cases of tax breaches. “… When the code works, it will work on a threshold and we will identify the cases,” she mentioned.
Rules mentioned that
Businesses holding annual sales of Rs 40 lakh or exceeding that for the supply of goods and Rs 20 lakh or exceeding that for the supply of services must register for the GST.
As per the Central Government, they are not intending to impose the GST on the UPI transactions exceeding Rs 2000. The Ministry of Finance mentioned in the Rajya Sabha that, after confusion was raised by notices issued based on UPI data.
