Panipuri wala gets GST Notice based on Phonepe and Razorpay Records

In a latest update, a Panipuri vendor in Tamilnadu who makes an earning of Rs.40 lakh per year gets a tax notice from the GST Department. The GST notice was issued on the basis of records of Phonepe and Razorpay. This is just the online payment; imagine how much money he made via cash.

“Based on the reports received from Razor Pay and Phonepe, you have received UPI payments for the outward supply of goods/services, and the payments received for the years 2021-22, 2022-23, and 2023-24 are Rs.40,11,019 in total,” the notice mentioned.

The notice stated that further analysis shows that you have not registered under the provisions of the TNGST Act, 2017, read with the relevant CGST Act, 2017.

Whereas the statutory provisions relevant to registration provisions under the TNGST/CGST Act, 2017, are shown as below:

As per subsection (1) of section 22 of the TNGST/CGST Act, 2017, every supplier with an aggregate turnover of Rs.20 lakhs in a financial year shall be liable for registration of GST. Further, as per sub-section (2) of section 23 of the TNGST/CGST Act, 2017, the government, by notification, has exempted any person, upto Rs.40 lakhs, who is engaged in exclusive supply of goods from obtaining registration.

Furthermore, supplying goods/services without obtaining GST registration even after crossing the threshold limit is an offence, liable to be penalised under section 122(1)(xi) of the TNGST Act, 2017, that extends to Rs.10,000 or 10% of the tax due, whichever is higher.