Pani Puri vendor gets GST notice as PhonePe and UPI payments cross Rs 40 lakh revenue in a year
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While the news has sparked humor on social media, with jokes about these vendors becoming corporate giants, it highlights the larger trend of small businesses moving into the formal economy. The increasing adoption of digital payments is slowly integrating these vendors into the tax system, raising questions about the future of India's informal sector.
The Rise of Digital Payments and GST Compliance
Traditionally, Pani Puri vendors have operated in the informal sector, often avoiding taxes. However, as digital payments become more widespread, small businesses are inadvertently crossing the Rs 40 lakh revenue threshold, which triggers GST registration. This has led to an increase in GST notices being issued to these vendors.
Social media users have humorously embraced the idea of street vendors turning into business magnates, with some joking about «export opportunities» and «foreign collaborations.» These witty posts reflect the growing public awareness of the impact digital payments are having on small-scale businesses, bringing them into the formal economy.
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