• Source:JND
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A pani puri vendor in Tamil Nadu received a Goods and Services Tax (GST) notice after his annual digital transactions surpassed Rs 40 lakh. The notice, based on payment records from platforms like PhonePe and Razorpay, brought the vendor’s income under scrutiny and ignited a debate on whether small vendors should be subjected to GST laws.

The vendor has yet to respond publicly, but his situation has sparked a broader discussion on the challenges and opportunities digital payments present for small businesses. Supporters of small vendors argue against imposing GST, citing their narrow profit margins. However, others believe digital transactions leave little room for ambiguity, making such vendors liable.  

Social media has reacted humorously to the news, with users imagining street vendors as future corporate giants or joking about "export opportunities" and "foreign collaborations." Beneath the humour lies a significant economic shift, the gradual incorporation of small-scale businesses into the tax-paying sector.

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Many see this as a sign of transformation, with informal enterprises integrating into the formal economy. However, it also highlights the need for updated taxation policies that address the unique circumstances of small vendors operating in a digital framework.

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This incident underscores the urgent need for clearer guidelines on GST applications for small vendors, especially as digital transactions continue to grow. As India's digital economy expands, these businesses face new challenges, including compliance with formal tax regulations, raising questions about the future of small-scale enterprises in a rapidly digitising world.