Key Points
- Viral GST Notice
- A Tamil Nadu pani puri seller was issued a Goods and Services Tax (GST) notice, alleging he received ₹40 lakh in online payments in 2023-24.
- The notice, dated December 17, 2024, is reportedly under Section 70 of the Tamil Nadu and Central GST Acts, asking the seller to present documentation regarding his transactions.
- Offense for Crossing GST Threshold
- As per the notice, receiving payments above the GST registration threshold without registering is considered an offense.
- Platforms like Razorpay and PhonePe reportedly flagged the seller’s transactions, showing significant receipts for 2021-22, 2022-23, and 2023-24, with ₹40 lakh being the highest.
- Online Debate
- Social Media Reactions:
- Many questioned if ₹40 lakh truly represents profit, noting costs like ingredients, manpower, and fixed expenses.
- Comparisons were made with salaried professionals taxed heavily despite earning less.
- Supporters of GST Compliance:
- Some users advocated taxing high-earning, unregistered businesses, arguing this burden shifts to honest taxpayers.
- Others suggested that the seller could add GST to his pricing to remain competitive.
- Social Media Reactions:
- Skepticism Over Authenticity
- Some Reddit users expressed doubts about the notice’s genuineness, suggesting it might be photoshopped.
- Broader Implications
- Discussions also touched on the risk of pushing businesses toward cash transactions to avoid scrutiny and taxes.
- The situation shed light on how micro-businesses might unintentionally cross the GST threshold, underscoring the need for awareness.
Curious Corner
Could this notice signify growing scrutiny of small businesses going digital? With increasing UPI adoption, are we likely to see more such cases that challenge traditional tax compliance perceptions?
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