Mysuru: Tax Consultant and senior Advocate B.C. Bhat said that small traders should get GST registration and pay taxes accordingly in order to avoid problems.

He was speaking at the seminar on ‘GST registration and UPI transactions’ organised by Bhavani E-tenders at Ideal Jawa Rotary Hall on JLB road yesterday.

Pointing out that at present, GST has 4-slabs of tax rates, he said that the Government has kept some essential products and articles of daily use such as Salt, Jaggery, Grains, Bread, Milk, Fruits etc.,   out of the GST tax regime.

“Prime Minister Modi has recently declared that the present tax structure would be simplified in the coming days. At present, transactions and payments through Google Pay, Phone Pay etc., that exceed Rs.40 lakh per annum comes under the Tax net. As such, it is the responsibility of traders, including small traders to file GST and IT returns explaining about their transactions with proof and conviction. Failure to do so would make the traders pay up taxes along with penalty”, he explained.

Continuing, Bhat said that several S tates have supported the Centre’s plan to scrap 12 percent GST rate, he said that if this happens, then there is a possibility that this tax slab would be clubbed with               5 percent GST.

Advising the small traders who have received GST notices, not to take them lightly, Bhat said that such traders should clarify their transactions before the Tax authorities, for which necessary preparations should be made right now.

He further said that small traders with annual UPI transactions  exceeding  Rs. 40 lakh cannot escape the GST  tax net, he noted that the IT department has expanded its network to detect any avoidance of paying due taxes. The small traders should not give scope to such a situation, he advised.