<p>Bengaluru: The Commercial Taxes Department has issued notices to around 7,000 unregistered small vendors across Karnataka, including those trading in exempted goods such as milk, vegetables, and unbranded food items.</p>.<p>No tax demand has been raised, but vendors have been asked to obtain GST registration.</p>.<p>A senior official said the notices were intended to ensure registration, as the department could not verify if the goods or services sold were exempt. Vendors must submit proof of exemption, he added.</p>.<p>The department flagged unregistered traders based on UPI transaction data, identifying digital inflows exceeding Rs 40 lakh in goods and Rs 20 lakh in services.</p>.Leopard attacks two in Karnataka's Kadur.<p>Local GST officers issued the notices under Section 63 of the GST Act.</p>.<p>Section 63 states: "Where a taxable person fails to obtain registration even though liable to do so... the proper officer may proceed to assess the tax liability... and issue an assessment order within five years..."</p>.<p>The GST notices have triggered concern among vendors.</p>.<p>A meat seller in Bengaluru’s Electronics City received a Rs 91-lakh notice despite claiming exemption and never having registered under GST.</p>.<p>Many vendors avoid GST registration, citing exemption or fear of high tax liabilities. Some have stopped accepting UPI payments, even at the cost of losing business.</p>.<p>In response, Chief Minister Siddaramaiah assured that notices would be withdrawn if vendors prove they deal only in exempted goods. He also said arrears would be waived for those who register now and comply with the Act.</p>.<p>Kumar Prasad BE, a chartered accountant, said that dropping UPI would hurt both businesses and the broader economy.</p>.<p>"Taxpaying is a chain. If anyone breaks away from that, the burden falls on the person just before the break," he said, adding that leaving the system leads to more unaccounted money and tax evasion.</p>.<p>Chartered accountant Ashok Shetty said the chief minister's assurance brings temporary relief, but since GST is centrally controlled and state-implemented, vendors must either register or produce clear evidence of exemption.</p>.<p>"UPI transactions show trade on both payer and payee accounts. This offers accountability, unlike cash transactions which cannot be traced," he said.</p>
<p>Bengaluru: The Commercial Taxes Department has issued notices to around 7,000 unregistered small vendors across Karnataka, including those trading in exempted goods such as milk, vegetables, and unbranded food items.</p>.<p>No tax demand has been raised, but vendors have been asked to obtain GST registration.</p>.<p>A senior official said the notices were intended to ensure registration, as the department could not verify if the goods or services sold were exempt. Vendors must submit proof of exemption, he added.</p>.<p>The department flagged unregistered traders based on UPI transaction data, identifying digital inflows exceeding Rs 40 lakh in goods and Rs 20 lakh in services.</p>.Leopard attacks two in Karnataka's Kadur.<p>Local GST officers issued the notices under Section 63 of the GST Act.</p>.<p>Section 63 states: "Where a taxable person fails to obtain registration even though liable to do so... the proper officer may proceed to assess the tax liability... and issue an assessment order within five years..."</p>.<p>The GST notices have triggered concern among vendors.</p>.<p>A meat seller in Bengaluru’s Electronics City received a Rs 91-lakh notice despite claiming exemption and never having registered under GST.</p>.<p>Many vendors avoid GST registration, citing exemption or fear of high tax liabilities. Some have stopped accepting UPI payments, even at the cost of losing business.</p>.<p>In response, Chief Minister Siddaramaiah assured that notices would be withdrawn if vendors prove they deal only in exempted goods. He also said arrears would be waived for those who register now and comply with the Act.</p>.<p>Kumar Prasad BE, a chartered accountant, said that dropping UPI would hurt both businesses and the broader economy.</p>.<p>"Taxpaying is a chain. If anyone breaks away from that, the burden falls on the person just before the break," he said, adding that leaving the system leads to more unaccounted money and tax evasion.</p>.<p>Chartered accountant Ashok Shetty said the chief minister's assurance brings temporary relief, but since GST is centrally controlled and state-implemented, vendors must either register or produce clear evidence of exemption.</p>.<p>"UPI transactions show trade on both payer and payee accounts. This offers accountability, unlike cash transactions which cannot be traced," he said.</p>