GST Registration Alert for UPI Users GST Registration: What You Need to Know About High-Value UPI Transactions and GST Notices GST Registration: What You Need to Know About High-Value UPI Transactions and GST Notices GST Registration Alert for UPI Users
GST Registration is a process by which a business obtains a unique GSTIN (Goods and Services Tax Identification Number) to collect and remit GST.
Recently, GST department issued a notice to a taxpayer as he has received more than Rs.40 lakh through UPI.
The GST Department closely monitors financial transactions, including those made via UPI, bank transfers, and credit card payments, to ensure compliance with tax laws.
If you do a huge transaction through UPI then be careful you may also receive a notice from the GST department.
GST Notices for High-Value UPI Transactions
A Pani Puri vendor from the Tamil Nadu state recently received a GST notice after the UPI payment exceeded Rs. 40 lakh in a year.
This highlights how tax authorities monitoring high-value digital transactions.
If your UPI or other payment methods cross the threshold, you may also receive a below mentioned notice.
| Summons to appear in person and to produce documents (Issued under the provisions of Section 70 of the Tamil Nadu Goods and Services Tax Act, 2017 and the Central Goods and Services Act, 2017) To XYZ Whereas, based on the reports received from Razorpay and Phonepe, you have received UPU payments for outward supply of Goods/Services, and the payments received for the years 2021-22,2022-23 and 2023-24 are as below: Year : 2023-24 Payment Received : Rs. 40,11,019 Whereas, further analysis shows that you have not registered under the provisions of the TNGST Act, 2017 read with relevant CGST Act,2017. Whereas the statutory provisions relevant to registration provisions under TNGST/CGST Act, 2017 is shown as below: As per subsection (1) of section 22 of the TNGST/ CGST Act, 2017, every supplier with aggregate turnover of Rs. 20 Lakhs in a financial year shall be liable for registration. Further, as per sub- section (2) of section 23 of the TNGST/CGST Act, 2017, the Government by notification have exempted any person upto Rs. 40 Lakhs, who is engaged in exclusive supply of Goods from obtaining registration. Furthermore, supplying goods/services without obtaining GST registration even after crossing the threshold limit is an offence, liable to be penalized under section 122(1)(xi) of the TNGST Act, 2017 that extends to Rs. 10,000 or 10% of the tax due , which ever is higher. |
Threshold Limit for mandatory GST registration
GST registration is mandatory for suppliers with turnover exceeding Rs.20 Lakhs in a financial year.
Exemptions from GST registration for suppliers of goods
Exemption up to Rs.40 Lakhs for those exclusively supplying goods, as per government notification.
Consequences and Penalties
- Supplying goods/services without GST registration after crossing the threshold limit is an offence under Section 122(1)(xi) of the TNGST/CGST Act.
- Penalty is Rs.10,000 or 10% of the tax due, whichever is higher.
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