When pani puri meets GST

It was only a matter of time before the taxman’s spoon stirred a storm in the street-side pani puri seller’s pot. When a vendor from Tamil Nadu got a GST notice for crossing Rs 40 lakh in UPI transactions, social media popped like a puri filled to the brim.

Who knew serving spicy potatoes and tangy water could land you in tax trouble?  Social media erupted with amusement and incredulity.

Who would have thought that dishing out puris could turn into a taxable ‘corporate’ enterprise? Memes flew thick and fast, with users joking about chaat bandis launching IPOs and vendors hiring MBAs to manage profits and masala margins. One quipped, ‘Should I ditch my startup for a pani puri cart?’ Another imagined them discussing foreign trade agreements — ‘with extra imli chutney on the side’.

One X user sympathized, ‘₹40 lakh is total transactions, not income! After deducting costs, the poor man probably has just enough to survive.’ Others joked about street vendors opening IPOs, setting up export businesses, or teaching MBAs how to run scalable snack carts.

Tales from the cart

This reminded me of a chaatwala near Begum Bazar in Hyderabad, introduced by a friend. His alu and samosa chaat — prepared in pure ghee — was so irresistible that empty plates piled up faster than they could be cleared. ‘The IT department has taxed him based on the number of used cups,’ my friend teased, and for a moment, I nearly believed him.

Street vendors like him, with crowds spilling onto the road, are not rare in India. What is new is the taxman’s interest, now that digital payments have replaced cash.

Imagine a chaiwala whose secret masala blend is sought by NRIs — and suddenly, he is questioned for ‘undeclared exports’. Or the dosa seller whose crispy delights lead to a booming franchise, attracting audits for horizontal expansion. Even the vada vendor, famous for queues longer than a movie release, might find his earnings classified as luxury income.

The price of going digital

It is easy to laugh, but the issue runs deeper. Digital transactions have brought even the smallest businesses under formal financial scrutiny. Platforms like Razorpay and PhonePe have made payments easier but have also exposed vendors to tax systems they never needed to understand. Crossing the GST registration limit — Rs 40 lakh in total revenue — means dealing with compliance far removed from their culinary skills.

Next time you savour that spicy golgappa or relish a crisp dosa, remember: the vendor who perfects your snack may now also be perfecting tax returns. And if you scan a QR code, you’re part of the reason. Enjoy the feast and think of the paperwork.

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