Amid rising concerns among traders in Karnataka over the issuance of nearly 6000 GST demand notices based on UPI transaction data, a top tax official has termed the action as within the framework of law. Meera Suresh Pandit, Joint Commissioner of Commercial Taxes, also clarified that notices are not final tax demands and the recipients have the right to respond with supporting documentation. 

If the reply is convincing or the goods and services are exempted under the GST Act, notices will be dropped, she added.  Reacting to the issue of notices sent to traders based on UPI transactions, a number of traders associations in the state have given a call to the traders to boycott UPI transactions. They have also called for a strike on July 25.

Responding to the proposed strike and calls to revert to cash-only transactions, Pandit said, “Calling for a ‘Bandh’ will not serve the purpose.” On concerns that UPI alone doesn’t reveal the full turnover, Pandit said, the “UPI transaction is only one indicator.”