GST Notice Shocks Vegetable Seller accepting digital payment:

Shankaragouda, a vegetable vendor has been selling vegetables for the last four years from Karnataka has received a GST notice of Rs 29 lakh.

GST Dept Sends Notice of Rs. 29 lakh to a Vegetable Vendor

Vanshika verma

Jul 22, 2025

Last update on Jul 22, 2025

GST Notice Shocks Vegetable Seller accepting digital payment A vegetable vendor named Shankaragouda from Karnataka has received a GST notice of Rs 29 lakh and has been ordered to pay this huge amount in tax. He has been selling vegetables for the last four years. This incident is in the Haveri district. Shankaragouda runs a small vegetable shop near the Municipal High School Ground. He says he buys fresh vegetables directly from farmers and sells them to the customers. His most of his transactions are done via digital platforms like UPI and mobile wallets. Shankaragouda also claimed that he has filed all his income tax returns on time and his records are completely correct; however, the GST department has issued a GST notice of Rs 29 Lakh based on digital transactions of about Rs 1.63 crore in his account in the last four years. This has shocked and upset the shopkeeper Shankaragouda because GST is not levied on fresh vegetables. And according to GST rules, if a seller buys vegetables directly from the farmers and sells them without processing, then it does not come under the responsibility of GST.

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Vanshika verma

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Vanshika Verma is a Content Writer with 1+ year of experience at Studycafe.in. A B.Com graduate from Delhi University, She writes articles on Finance, Tax, ICAI, GST, and the latest financial news, with a focus on making complex topics easy for readers and professionals.