A pani puri vendor from Tamil Nadu has become the center of attention after receiving a Goods and Services Tax (GST) notice for online transactions amounting to ₹40 lakh during the financial year 2023-24. The unexpected development has sparked widespread discussions on social media, with many expressing surprise at the scale of earnings from the beloved street snack business.
GST Notice Details
On December 17, 2024, a summons was issued under Section 70 of the Tamil Nadu Goods and Services Tax Act and the Central GST Act, requiring the vendor to appear in person and provide documentation of his financial transactions.
The focus of the notice is to examine the vendor’s earnings over the last three years, with particular scrutiny on the significant revenue recorded during the 2023-24 fiscal year. The authorities obtained these details from the digital payment platforms such as Razorpay and PhonePe, used by the vendor to accept payments for his popular pani puris.
Why GST Notice was sent and What is the Penalty?
As per subsection (1) of section 22 of the TNGST / CGST Act, 2017, every supplier with aggregate turnover of ₹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, up to ₹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 penalised under section 122(1)(xi) of the TNGST Act, 2017 that extends to ₹10,000 or 10% of the tax due, whichever is higher.
Social Media Reactions
The news has triggered a range of reactions online. While some social media users found humor in the situation, marveling at the vendor’s apparent success, others questioned whether the pani puri business might be more profitable than previously thought.
Why This Matters
The incident has drawn attention to the growing use of digital payment systems, even among small-scale street vendors, and the increasing scrutiny by tax authorities on unreported income. It also highlights the potential profitability of small businesses like street food ventures when scaled effectively.
For the vendor, this notice underscores the importance of maintaining accurate financial records and staying compliant with tax regulations, even for informal businesses. As the case unfolds, it serves as a reminder of how digital payment systems are reshaping business dynamics and tax compliance, even in unexpected corners of the economy.
