Haveri : A small vegetable seller from Haveri, Karnataka, has been left shocked after getting a huge tax notice. Shankargouda Hadimani, who runs a tiny vegetable shop near the Municipal High School grounds, has been asked to pay Rs 29 lakh under the Goods and Services Tax (GST) rules.
Shankargouda has been selling vegetables for the last four years. Most of his customers pay through UPI or other digital wallets. Shankargouda explains that he buys fresh vegetables directly from farmers and sells them in his small shop. He says most customers prefer UPI as they rarely carry cash these days. He also mentions that he files his income tax returns every year and keeps proper records. Now, he wonders how he can pay Rs 29 lakh, a sum he says is impossible for him to arrange.
According to ClearTax, fresh and chilled vegetables are not taxed under GST. If a vendor buys vegetables directly from farmers and sells them fresh and unprocessed, there is no GST on that. However, recently, the Karnataka GST department said they are keeping a close eye on traders who accept digital payments. On July 12, 2025, the department announced that traders whose total turnover crosses the limit for GST registration will get notices if they don’t register and pay tax.
After the notices were sent, many small traders like Shankargouda stopped accepting UPI and now take only cash. But the department warned that tax applies on the total money received, whether by UPI or cash. Officials said they will take action to recover tax if traders try to hide their real income, the report mentioned. Stories like Shankargouda’s highlight how recent GST checks and notices are leaving small traders worried and confused.
