No GST Notices to small vendors based on UPI transactions: Nirmala Sitharaman

Answering questions of Mr. Tejasvi Surya and Dr. K Sudhakar, the Minister of Finance, Mrs. Nirmala Sitharaman replied in Lok Sabha that no Central GST authorities have not issued any notices based on UPI transactions.

There question was, if the Government has issued GST notices to small traders and street vendors in the country without assessment of their business activities including Karnataka.

They also asked the State/UT-wise details where such notices are issued.

Further they wanted to know if the Government plans/proposes to withdraw such notices and address the distress caused to such traders/vendors due to notices on UPI transactions.

Answering the first question in negative, situation of answering the 2 next question does not arise.

Further the next question was on GST evasions happening in Karnataka, and, the details thereof including the total volume/number of evasions detected in the State.

As per the data shared, In the financial year 2022-23, GST enforcement recorded 959 cases with a total detection amount of Rs. 25,839 crore and voluntary payments worth Rs. 1,705 crore. During this period, two persons were arrested.

In 2023-24, the number of cases slightly declined to 925, while the detection amount dropped significantly to Rs. 7,202 crore and voluntary payments decreased to Rs. 1,197 crore, with the number of arrests remaining at two.

However, in 2024-25, there was a sharp increase in enforcement activity, with 1,254 cases registered and detection amount surging to Rs. 39,577 crore. Voluntary payments also rose to Rs. 1,623 crore, and the number of persons arrested increased substantially to nine.

This indicates a notable escalation in detection and enforcement actions in 2024-25 compared to the previous two years.