CA criticizes Govt’s move of withdrawing GST notices sent to milk sellers and vegetable vendors: Why only Salaried class pay taxes honestly

Recently, the GST department has decided to withdraw the GST notices sent to milk sellers and vegetable vendors. This decision has raised questions such as Why did the government withdraw these notices?, Shouldn’t everyone who crosses a certain sales limit register for GST? Why only these sellers enjoy this break? Why only salaried individuals pay taxes honestly?

Karnataka withdraws GST notices to milk sellers, vegetable vendors

Why But ?

If they are above threshold , then let them register under GST

Why only Salaried class pay taxes honestly ?#KarnatakaGST #IncomeTax #GST

— CA Paaras Gangwal (@ThetaVegaCap) July 24, 2025

Milk and fresh vegetables are essential daily items, and, importantly, they fall under the category of goods with a zero GST rate. This means legally, no GST is charged on the sale of fresh milk and fresh vegetables. Because of this, many small sellers of these essential daily items were being asked to register for GST or faced notices, even though their products do not actually attract GST.

Now, the government has recently noticed that many small vendors, who usually operate on minor profit margins, have been burdened with these GST notices. Since the items they sell are not categorised under GST, basically exempted from GST, pursuing these small vendors for GST registration and compliance was not practical or fair. Therefore, the government chose to withdraw the GST notices to these two specific groups of individuals to reduce their concerns and help them continue their businesses smoothly.

But the question is, what about other small vendors such as chatwalas or panipuri walas (snack sellers)? Interestingly, the government has not withdrawn its notices. This implies that the government is still asking these vendors to comply with GST rules, maybe because their products either attract GST or they are above the limit of exemption.