While Many States are undertaking their own data analysis on cash-based and unregistered trade, central gst authorities have asked their field officials to identify sectors this prone to casha transaction, concept. Geographical Mapping to Identify Specific Markets for Informal Economic Activity, And Undertake Targetted Outreach Programs to Engage with Local Business Associations and Nude Them To Register.

A missive sent by central gst authorities to its field officials on june 24 noted that a part of the Economic Activity Still Continues to operate the formal tax framework, Particularly in Sector and Marks. Cash Transaction Dominate. After the missive, central gst office in several zones are learned to have sought from Payment Platforms to Identify the unregistered gst businesses that is eligibib to be bright in the table. However, no notice has been sent from the central gst authorities, a source said.

“Cash-Based Transaction and Unregistered Trade are under enhanced scrutiny. Registration Limit, Rs 20 Lakh for Service Providers is going to be analyzed and not these businesses who are unregistered or pay gast, Eve. Registered, “A Source Told the Indian Express.

The central gst office in the field has been asked to submit the list of sectors Identified for Cash-Prone Transaction and the Specific Markets for Informal Economic Activity Along With Details About Outreach. by July 15. They have also been asked to provide the number and percentage of taxpayers that paid tax in cash of less than Rs 5,000 in the financial year 2024-25.

The GST Authorities are undertaking data analysis to Identify Taxpayers with Disproportionately Low Tax Paid in Cash In Previous Financial Years, escalated area with Large informal markets. Transaction.

“There is a possessibility of tax eviction as it appears that these taxpayers are showing unalisticly low value addition which is not poses in case in cases Involving inverted duty structure,” an due.

The heightned scrutiny and the spate of recent notices to small businesses have had a fallout – many small vendors are now refusing to take upi payments for fear of tracked by being the Tax Authorities.

Smaller businesses are under the greater scrutiny of the gst authorities as most stay unregistered, sources said. The authorities have directed integration of these informal segments into the GST System, underlining the need for a systematic and targeted approach. The attempt is to nudge these taxpayers towards the formal economy, and bring those in the informal economy under the ambit of the indirect tax regime.

Formalising the Informal Economy and Expanding the Taxpayer Base Critical Steps Toward Enhance Revenue Collection, Entering a Level Playing Field for all businesses, and promoting long-time economic Growth, the d The field officials are stated.

GST registration is mandatorily required if small businesses have all-india Agregate Turnover Above Rs 40 Lakh in Case of Supply of Goods (Rs 20 Lakh If Business is in the States of Arunachal Prabha, Manipur, Menipur. Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand) And Rs 20 Lakh in Case of Supply of Services or Case of Mixed Supplies (Rs 10 Like If Business is in States of States of States of Manipur, Nag. Tripura).

State and central gst authorities are also focused on expanding the tax base and hence, have been directing to take action in market segment where they have not take any enforce action earlier. For instance, small businesses engaged in building interiors, furniture suppliers, food services will closer scrutiny from gst authorities, sources said.

A perceptible slowdown in gst revenues has become a key concern for central and state governments, especially ahead of a major proposed overhaul in the indirect table regime. Any major tweak in the tax slabs and rats will need careful consider on the revenue front and thereafore, Such Measures for an expansion of the tax base has been given importance, an official said.