A pani puri vendor from Tamil Nadu has come under the Goods and Services Tax (GST) authorities' scanner after reportedly receiving online payments amounting to Rs 40 lakh during the 2023-24 financial year. The vendor was issued a summons under Section 70 of the Tamil Nadu Goods and Services Tax Act and the Central GST Act on December 17, 2024.
GST regulations mandate that businesses with an annual turnover exceeding Rs 40 lakh must register and comply with taxation rules.
The purported notice, which is doing rounds on social media, directed the vendor to appear in person and present financial documents related to his transactions over the past three years. Officials aim to examine the vendor's earnings, with a specific focus on the substantial payments received through digital platforms in the last financial year.
The notice also highlighted that supplying goods or services without obtaining GST registration, even after surpassing the Rs 40 lakh annual turnover threshold, is considered an offence.
The internet has reacted to the notice.
A user wrote, "40 L is the amount he received and that may or may not be his income. You have to deduct ingredients cost man power costs fixed expenses etc.. he may be earning just enough to get by."
Another said, "I believe more than 50 per cent people would be paying in cash as the payments are not hefty which are merely 50-100 bucks. I believe he must be earning not less than 60 LPA."
"That's higher salary than a professor in many medical colleges, who are taxed on slab. The Pani Puri guy can add GST to his bills and pay the Govt. However he will lose to competition whose bill will be lower. The taxman action would push people into cash transactions!!!" a comment read.
Earlier, a comedian's video went viral after he passionately argued that setting up a pani puri stall was more profitable than a corporate job. He said that, unlike corporate jobs where attracting customers was a struggle, pani puri vendors enjoyed a steady stream of customers. Vendors also had flexible working hours, free from rigid leave policies. He encouraged viewers to overcome societal concerns and consider starting their own food business.
