Pani Puri Vendor Faces GST Scrutiny After Rs 40 Lakh Online Payments

A pani puri vendor from Tamil Nadu is under scrutiny by the Goods and Services Tax (GST) authorities after receiving online payments totalling Rs 40 lakh in the 2023-24 financial year. The vendor, whose identity has not been disclosed, was served a summons under Section 70 of the Tamil Nadu Goods and Services Tax Act and the Central GST Act on December 17, 2024.

According to GST rules, businesses that earn over Rs 40 lakh annually must register for GST and comply with the associated tax regulations. The notice, which has since circulated on social media, instructs the vendor to appear in person and present financial records for the past three years. Officials are particularly interested in reviewing the payments received through online platforms during the last fiscal year.

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The notice also warned that providing goods or services without GST registration, once the annual turnover exceeds Rs 40 lakh, is considered an offence. This has sparked debates online.

One user commented, "40 L is the amount he received, but that may not be his profit. After accounting for ingredient costs, manpower, and other expenses, his earnings might be much lower." Another wrote, "I believe many customers still pay in cash, so his total earnings might be even higher than expected."

There was also concern about the potential impact on the vendor's business. A comment stated, "Adding GST to his bills may make his services more expensive than others, pushing customers toward cash transactions."

The case has brought renewed attention to the profits of small food vendors. A viral video by a comedian recently suggested that running a pani puri stall could be more profitable than a corporate job, given the steady flow of customers and flexible working hours.