Panipuri Vendor Under GST Scanner for Rs 40 Lakh Earnings
A panipuri vendor in Tamil Nadu has been issued a Goods and Services Tax (GST) notice after recording digital transactions amounting to Rs 40 lakh during the financial year 2023-24. The summons, issued under the Tamil Nadu GST Act and Central GST Act on December 17, 2024, has sparked widespread discussions online about small business taxation and compliance.
Pani puri wala makes 40L per year and gets an income tax notice 🤑🤑 pic.twitter.com/yotdWohZG6
— Jagdish Chaturvedi (@DrJagdishChatur) January 2, 2025
Details of the GST Notice
According to GST regulations, any business with an annual turnover exceeding Rs 40 lakh is required to register and comply with tax mandates. The vendor has been directed to appear in person and submit financial records from the past three years for inspection. Authorities are particularly focused on examining the substantial online payments attributed to the vendor in the last fiscal year.
The notice also reiterated that operating without GST registration after crossing the Rs 40 lakh threshold is an offence under the tax law.
Mixed Reactions Online
The internet has been abuzz with divided opinions on the matter. Many social media users have pointed out the nuances of the vendor’s earnings. Some emphasized that the Rs 40 lakh in online payments does not equate to net income, as it does not account for expenses like ingredients, labor, and overheads. Others speculated that cash transactions, which are common for such businesses, could mean the vendor’s actual turnover is even higher.
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!!!— Dr Dheeraj K, MD, DM, 🇮🇳 (@askdheeraj) January 2, 2025
One user argued that the vendor’s annual earnings might rival those of professionals in certain sectors, prompting suggestions that he should add GST to his bills. However, this raised concerns that such measures might push small businesses toward cash transactions to avoid taxes.
The case has also reignited discussions about the taxation burden on small vendors and the challenges of competing with informal businesses that do not adhere to tax regulations. Critics argue that enforcing GST compliance in such cases could drive vendors into the informal economy, defeating the purpose of digital transparency.
The incident also coincides with a broader cultural shift highlighting entrepreneurship in the food industry. A comedian’s recent viral video compared the steady customer flow and flexibility of running a panipuri stall to the challenges of corporate jobs. He encouraged aspiring entrepreneurs to explore small business ventures despite societal stigma.
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