GST Awareness Workshop Held in Bengaluru Amid Concerns Over Tax Notices
Joint Commissioner Meera Suresh Pandit Explains Why Traders Are Receiving Notices and What They Should Do Next
GST Awareness Workshop Held in Bengaluru to Address Traders’ Concerns Over Notices
Joint Commissioner Meera Suresh Pandit clarifies registration norms, exemptions, and the way forward for small businesses
Bengaluru, 21 July — In response to growing concerns from small business owners over a surge in GST notices, the Department of Commercial Taxes, Government of Karnataka, held a detailed awareness workshop in Bengaluru. The session, led by Meera Suresh Pandit, Joint Commissioner of GST (DGSTO-4), aimed to clarify misunderstandings, explain compliance requirements, and outline the next steps for those who have received notices.
Notices Are Not Final, Clarifies GST Commissioner
Addressing the traders, Meera Pandit emphasized that GST notices recently issued are not final demands but preliminary intimations based on transaction data collected from digital platforms such as Paytm and PhonePe.
“These notices are just intimation letters,” she said. “They are not final. We are aware of the confusion and anxiety. You are only being asked to clarify the nature of your transactions. If you respond with the required documents, the matter will be resolved after verification.”
She reiterated that even cash transactions are being considered, and not just digital payments.
Exempt Goods Do Not Require GST Registration
Pandit clarified that not all businesses need to register under GST. Registration is mandatory only if a trader’s Annual Aggregate Turnover (AAT) exceeds ₹40 lakh for goods and ₹20 lakh for services. Businesses dealing exclusively in exempt goods—such as fresh fruits, vegetables, milk, flowers, unpackaged food grains, fish, chicken, and mutton—do not need to pay GST.
“If you’re selling only exempted goods, you still need to respond to the notice and declare it,” she said. “The officials will verify and close the case accordingly.”
However, businesses offering both taxable and exempt goods/services must pay GST only on the taxable portion.
Composition Scheme for Small Businesses
To simplify compliance for small businesses, the GST Department is promoting the Composition Scheme, available to those with turnover less than ₹1.5 crore (goods) or ₹50 lakh (services). Under this scheme:
-
Traders/Manufacturers pay just 1% GST (0.5% CGST + 0.5% SGST)
-
Non-alcoholic Restaurants pay 5%
-
Service Providers pay 6%
Businesses under this scheme file returns quarterly instead of monthly.
Pandit added that newspaper advertisements about the scheme have been published every March, but many traders remained unaware. She urged eligible businesses to come forward and apply.
Clarifying Taxable Items
The Commissioner listed several goods and services that are taxable, including:
-
Cement, iron, steel, and furniture (if turnover exceeds ₹40 lakh)
-
Packaged food items like pickles, ginger-garlic paste, dates, and paneer
-
Soft drinks, cakes, pastries, bakery items
-
Restaurants, pan shops, courier services
-
PG accommodations (if annual turnover crosses ₹20 lakh)
-
Diagnostic centres offering cosmetic treatments
Goods like flavoured milk, condensed milk, and processed buttermilk are also taxable, unlike plain milk.
“We only charge GST on taxable items,” said Pandit. “Even if your shop has both exempt and taxable goods, GST will apply only to the taxable ones.”
She also clarified that wine shops selling only wine are not under GST, but those selling additional items like packaged water or soft drinks are liable.
No Relief by Avoiding UPI Transactions
Pandit dismissed the belief that switching to cash transactions will help avoid tax scrutiny. “It’s a misconception,” she said. “India is the global leader in online transactions. Avoiding UPI won’t exempt you from GST. The source and nature of the transaction is what matters.”
Support and Safeguards Against Misuse
The department has set up a helpline and helpdesk at the DGSTO-4 office in Koramangala, where trained staff assist traders in registration, filing returns, and responding to notices. GST registration is completely free, requiring only the submission of proper documents.
To address concerns about fraud, Pandit warned traders against unauthorized agents or middlemen offering paid “settlement” services.
“Always verify their ID. If they can’t produce one, don’t entertain them,” she said. “There is no charge for GST registration. You only need valid documents.”
The department has also introduced a toll-free number to report any harassment or misconduct by officials, reinforcing their commitment to transparency.
Documents Required for GST Registration
For GST registration, traders must submit:
-
PAN card and Aadhaar card (or Aadhaar enrollment slip)
-
Voter ID or any valid identity proof
-
One passport-sized photograph
-
Address proof (sale deed, rental agreement, electricity bill, or property tax receipt)
-
Business address proof (if different)
-
First page of the bank passbook
Final Message: GST is a Responsibility, Not a Burden
Closing the session, Meera Pandit reminded traders that GST is not a tax on their income or profit.
“You’re not paying from your pocket. You’re collecting it from the customer and depositing it with the government,” she said. “It is our duty to be aware of the law, and it is our responsibility to support you in understanding and complying with it.”
Contact for Help
GST Helpdesk, 6th Floor, BMTC Building, 80 Feet Road, 6th Block, Koramangala, Bengaluru – 560095Helpline: +91 9845370404 | Toll free: 1800-4256-300
GST registration portal: https://www.gst.gov.in
🗣️ QUOTES
“These GST notices are not final. If you deal in exempted goods, just submit your documents—we will close the case.”
— Meera Suresh Pandit, Joint Commissioner of GST
“Not using UPI doesn’t mean you’re outside the tax system. Even cash transactions are being tracked.”
— Meera Pandit
“Traders are not paying GST from their own pockets. They collect it from customers and pass it on to the government.”
— Meera Pandit
“We are here to help. Please don’t panic. Talk to us, submit documents, and we’ll resolve the issue.”
— Meera Pandit, at GST Workshop in Bengaluru
“The 18% GST figure in notices is a placeholder. Your actual tax rate will depend on what you sell.”
— GST Official
#SmallBusiness #TaxCompliance #GSTHelpdesk
