Lok Sabha Question No. 309 (STARRED), answered on 2025-08-11
Subject: GST Notices to Small Traders/Street Vendors
Ministry: FINANCE
Asked by: Dr. K Sudhakar, Shri Tejasvi Surya

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA STARRED QUESTION NO. 309*

TO BE ANSWERED ON MONDAY, THE 11 th  AUGUST, 2025 / SRAVANA 20, 1947 (SAKA)

## GST Notices to Small Traders/Street Vendors

*309. DR. K SUDHAKAR: SHRI TEJASVI SURYA:

Will the Minister of FINANCE be pleased to state: (a) whether the Government has issued GST notices to small traders and street vendors in the country without assessment of their business activities including Karnataka; (b) if so, the details thereof, State/UT-wise; (c) whether the Government plans/proposes to withdraw such notices and address the distress caused to such traders/vendors due to notices on UPI transactions; (d) whether it is true that GST evasions have been happening in Karnataka, if so, the details thereof including the total volume/number of evasions detected in the State; (e) whether such evasions are due to systemic flaws within the GST Department and if so, the details thereof along with the estimated loss of GST to Karnataka; and (f)  the measures taken/to be taken by the Government to simplify GST compliance for small

- traders and reduce their regulatory burden?

## ANSWER

THE MINISTER OF FINANCE (SMT. NIRMALA SITHARAMAN)

(a) to (f): A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (f) OF LOK SABHA STARRED QUESTION NO. 309* DUE FOR ANSWER ON 11 th  AUGUST, 2025

- (a) to (b): No. Central GST authorities have not issued any notices based on UPI transactions.
- (c): does not arise in view of the answer to (a) and (b) above.
- (d): The details of GST evasion cases by the Central Tax formations pertaining to the State of Karnataka is as under:
- (e): No.
- (f):    A  number of measures have been taken by the Government on the recommendations of GST Council for the benefit of small business sector which includes: -
- (1)  For  trade  facilitation,  small  and  medium  enterprises  are  not  required  to  obtain  GST registration: -
- (i)  Persons  involved  in  Intra-State  taxable  supply  of  goods,  if  his  aggregate  turnover  in  a financial year does not exceed Rs. 40 lakhs (Rs. 20 lakhs for certain special category states);
- (ii) Persons involved in Intra-State or Inter-State taxable supply of Services, if his aggregate turnover  in  a  financial  year  does  not  exceed  Rs.  20  lakhs  (Rs.  10  lakhs  for  certain  special category states)
- (2) Composition levy scheme in GST is an alternate method of levy of tax designed for small and medium taxpayers whose turnover is up to the prescribed limit. A uniform rate of tax @1% (0.5% under the CGST Act and 0.5% under the respective SGST Act) is payable on supplies by traders  of  goods  and  manufacturers  of  goods  and  2.5%  under  each  Act  for  supplies  by restaurants.
- (3)  All  eligible  registered  person  having  annual  turnover  up  to  Rs.  5  crores  in  the  preceding financial year may opt for filing of quarterly returns with monthly payment of tax.
- (4) Filing of Annual Returns for FY 2017-18 to FY 2023-24 have been made optional for small taxpayers with annual turnover of up to Rs. 2 crores.

| Period   |   No. of cases |   Detection (Rs. in Cr.) |   Voluntary payment (Rs. in Cr.) |   No. of persons arrested |
|----------|----------------|--------------------------|----------------------------------|---------------------------|
| 2022- 23 |            959 |                    25839 |                             1705 |                         2 |
| 2023- 24 |            925 |                     7202 |                             1197 |                         2 |
| 2024- 25 |           1254 |                    39577 |                             1623 |                         9 |

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