An approved accountant warned small companies not to accept online payments of high value without registration of the GST, citing an increasing trend in the opinions and penalties of the tax authorities. “If the amount exceeds RS 20/40 Lakhs and you don’t have a TPS number, you can face TPS and penalties,” said Ca Chirag Chauhan on Wednesday.
Chauhan pointed out the issue on social networks in the midst of the growing reports of the application of TPS against unregistered sellers. “Small businesses should be cautious with online receipts via UPI, GPAY, BHIM, PAYTM, etc. The TPS authorities issue notices of non-compliance with small businesses,” he published, pointing to an increasing regulatory examination.
Its warning comes because many sellers in Bengaluru have started to completely move away from digital payments. In several neighborhood stores, the QR code stickers are removed and replaced by notes reading “no upi, only money”, according to a report by The Economic Times.
Change is motivated by fears of tax opinions. Thousands of small businesses – including merchants, food trolleys and cardboard sellers – have received TPS opinions, some with requests meeting redheads, said lawyers and familiar accountants with the problem.
A HORAMAVU seller said to and: “I do a business of around 3,000 rupees per day and I live on the small profit I make. I can no longer accept payment by UPI.”
Under the TPS Act, companies that provide goods must register and pay TPS if their annual turnover crosses RS 40 Lakh. For service providers, the threshold is Rs 20 Lakh. The Karnataka commercial tax service confirmed that it had issued opinions on the basis of UPI transaction data since 2021-2022 for cases where turnover seems to cross these limits.
The ministry would have declared that in all these cases, companies were to register for TPS, disclose their taxable turnover and pay the appropriate taxes.
There is also an increasing political decline. BJP deputy Suresh Kumar said that he was writing to chief Minister Siddaramaiah requesting an intervention. Suppliers’ associations claim that the application campaign creates fear, many suppliers preferring money to avoid threats of harassment and expulsion.
Advocate Vinay K Sreenivasa, spouse secretary of the Federation of Associations of Street Vendors Bengaluru, said that the trend was worrying and affects the story of the digital economy.
