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The life of Shankar Gowda, who hails a vegetable near the Municipal High School Ground in Haaveri district of Karnataka, turned up when he got a GST notice of Rs 29 lakh. Shankar Gowda, who has run his small shop for four years, never thought that digital payment, which has been adopted for the convenience of customers nowadays, will become such a big problem for them. This story is not only of Shankar Gowda, but also of all the small traders who are facing difficulties inadvertently trying to move with modern technology.

Digital Payment: boon or curse?

Shankar Gowda sells fresh vegetables at his shop, which they buy directly from local farmers. In today’s era, when most customers use UPI or other digital payments methods, Shankar Gowda also adopted this facility. He explains, “Customers have low cash, so I started UPI. But what did I know that it would become such a big problem for me?” The GST department has sent a tax notice of Rs 29 lakh on the basis of their digital transactions of Rs 1.63 crore. This amount seems impossible for a small businessman like him.

Shankar Gowda says that he regularly files income tax returns and keeps accounts of all his transactions. They raise the question, “Where should I bring such a huge amount? My small shop does not make so much profit.” According to the Tax Salah Manch ‘Clear’, if a seller sells and sells fresh vegetables without processing farmers, GST does not apply to it. In such a situation, this notice seems to be given to Shankar Gowda against the rules. The case highlights the challenges of the complex tax system that comes forward to small traders, where information and lack of resources bothers them.