The GST Council could consider granting amnesty from interest and penalties to small vendors who have been issued tax notices based on UPI transaction data, according to Kotraswamy M, commissioner of central taxes.
Chief Minister Siddaramaiah will meet with trade bodies along with finance department secretaries and commercial tax officers to allay the fears of small traders and street vendors on complying with GST norms on Wednesday.
The Karnataka Commercial Tax Department’s decision to issue demand notices to traders over evasion of GST despite having an annual turnover of more than Rs 40 lakh via UPI payments has made small traders and shopkeepers wary of accepting digital payments, with some even removing UPI QR code stickers from their establishments in Bengaluru following the crackdown.
