Traders dealing in GST-exempt goods need not worry, says Tax Officer

Mysore/Mysuru:  The Department of Commercial Taxes has begun collecting information on traders using data from UPI and other online payment platforms. However, since transaction records do not indicate the nature of goods sold, it is currently difficult to determine whether traders are dealing in taxable or exempt items.

P.D. Shobha, In-Charge Joint Commissioner (Administration Division), Commercial Taxes Department, clarified that traders who deal exclusively in exempt goods will be excluded from GST registration after verification. Notices have been issued based on PAN and address details. If it is established that a trader deals only in non-taxable goods, they will not be liable for GST.

She noted that many traders have already submitted product-related information to the Department. Those selling exempt items have no reason to be concerned about GST liability. Traders may also share product details over the phone, and if verified on-site by officials, they will be formally informed that GST registration is not required.

Of the 1,314 cases identified in the Mysuru Division — which covers Mysuru, Chamarajanagar, Mandya and Kodagu districts — the Department has issued GST intimation notices to a range of business establishments.

Documents submission

Traders, who sell non-taxable goods, can submit relevant documents and request exemption from GST registration. During the compilation of trader data, the Department did not initially receive item-specific details. Those exclusively dealing in exempt products may now submit proof and opt out of the GST process. Shobha explained that all business transaction accounts are linked to identifiable banking codes, which help the Department gather transaction data and assess GST applicability based on turnover.

She warned traders against discontinuing digital payments in an attempt to avoid taxes. “Stopping online payments will not guarantee exemption from GST,” she said. “In fact, it may harm traders’ businesses, as customers now overwhelmingly prefer digital payments. Cash-only transactions could drive customers away and reduce convenience for both sides.”