The government has clarified that there is no plan to impose GST on UPI transactions of more than Rs 2000. This statement of Minister of State for Finance Pankaj Chaudhary came after Karnataka traders received GST demand notices based on UPI transactions. Minister Pralhad Joshi said that GST notices have been issued to small traders in Karnataka by the state government.
New Delhi: The government has once again clarified that there is no plan to impose GST on UPI transactions of more than two thousand rupees.
This clarification from Minister of State for Finance Pankaj Chaudhary came after Karnataka traders received GST demand notices based on UPI transaction data.
Food, Public Distribution and Consumer Affairs Minister Pralhad Joshi said last week that GST notices to small traders in Karnataka have been issued by the state government and the central government has no role in it.
DK Shivakumar’s statement called ridiculous
Joshi had called the statement of the state’s Deputy Chief Minister DK Shivakumar extremely ridiculous, in which he had said that the state has no role in issuing the notices.
Joshi said, Karnataka’s commercial tax officials had issued GST dues notices to small traders. Yet, the state government is now misleading the public by pretending that it is not involved in this. This is nothing but an attempt to evade responsibility. If GST notices were issued by the central government, traders in many other states would also have received them. However, this did not happen anywhere else. Why are these notices being sent only in Karnataka?
Who issued the notices
He clarified that GST has two components – CGST (Central GST) under the Central Government and SGST (State GST) under the State Governments. The notices to small traders in Karnataka were issued by the State Commercial Tax Department.
