Aligarh: This Kachori seller earns Rs. 60L; gets tax notice
What's the story
There may be many reasons for why Prime Minister Narendra Modi's pakoda selling advice doesn't work, and you can add another to your list: pakodas aren't kachoris. Apparently, you can earn over Rs. 60 lakh annually by selling kachoris alone, as proven by one Aligarh-based Kachori seller, Mukesh Kumar, whose shop was recently inspected by income tax officials. Here's what went down.
Details
Commercial tax department received complaint against Mukesh
The shop, called 'Mukesh Kachori,' is located near the Seema cinema hall in the Nai Basti area of Aligarh. Over the past 12 years that Mukesh has been running the shop, it has grown quite popular among locals. The line of customers never ends throughout the day, IANS reports. Recently, the commercial tax department received a complaint against 'Mukesh Kachori', given its immense popularity.
Investigation
'Mukesh Kachori' earns between Rs. 60 lakh-1 crore
After receiving the complaint, tax inspectors stalked 'Mukesh Kachori' while sitting at a nearby shop. Reportedly the inspectors tracked sales at the shop and estimated that 'Mukesh Kachori' earns between Rs. 60 lakh to Rs. 1 crore annually, and perhaps even more. Thereafter, Mukesh was served a tax notice as his shop is not registered under GST, and he does not pay taxes.
Quote
No one told me that these formalities are needed: Mukesh
Mukesh told IANS, "No one told me that these formalities are needed. We're simple people who sell 'kachoris' and 'samosas' for a living." Speaking to ANI, Mukesh added, "Modiji said GST registration is required in turnover of more than Rs. 40 lakh, my income isn't even half of it. These people are threatening me now." He claims his daily sale is Rs. 2,000-3,000.
Authorities
Mukesh told to register GST, pay one year's tax: SIB
Meanwhile, a State Intelligence Bureau (SIB) member investigating the case told IANS, "Mukesh readily admitted to his income and gave us all details of his expenditure on raw material, oil, LPG cylinders, etc." An SIB official said Mukesh will need to register the shop under GST and pay tax for one year. SIB Deputy Commissioner R.P.D. Kaunteya confirmed a notice has been issued.
Information
Businesses with Rs. 40 lakh annual turnover to pay GST
As of April 1, 2019, any business with an annual turnover of Rs. 40 lakh is required to get a GST registration under the GST Act. A 5% tax is levied on prepared food, hence, Mukesh will have to pay Rs. 3.5 lakh annual tax.