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Key Points

Karnataka CM Siddaramaiah met trade unions to address GST notice concerns, assuring no taxes on exempt goods like milk and vegetables. The government will not pursue old tax arrears if traders register under GST. A dedicated helpline and awareness programs will clarify GST rules for small businesses. Trade unions withdrew protests after the CM's assurances.

Key Points: Siddaramaiah Assures No GST on Exempt Goods After Traders Protest

  • Siddaramaiah clarifies GST notices target UPI transactions over Rs 40 lakh
  • Trade unions demand direct dispute resolution with tax dept
  • Govt to waive old arrears if traders register under GST
  • Karnataka ranks 2nd in India for GST collection
2 min read

Karnataka CM Siddaramaiah addresses GST notice concerns at trade union meeting, assures no taxes on exempt goods

Karnataka CM Siddaramaiah addresses GST notice concerns, exempts small traders dealing in milk, vegetables, and fruits from tax obligations.

"No taxes will be collected from traders dealing in exempt goods, but those liable must comply. – Siddaramaiah"

Bengaluru, July 23

Karnataka Chief Minister Siddaramaiah chaired a meeting with representatives of various trade unions on Wednesday to discuss concerns over GST notices issued to small traders for non-payment of taxes. The meeting addressed grievances and proposed solutions to support small businesses.

Trade union representatives, including the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), raised concerns about confusion among small traders regarding GST notices, which often include loan amounts and personal transactions. They urged the government to allow traders to directly resolve issues with the Commercial Tax Department without intermediaries and to provide sufficient time to settle dues.

Suggestions included launching a dedicated helpline and conducting awareness programs to clarify GST regulations. They also requested a one-time waiver of old tax arrears.

The Chief Minister clarified that notices were issued only to traders with UPI transactions exceeding Rs. 40 lakh, initially to prompt GST registration. He assured that no taxes would be collected from traders dealing in exempt goods, such as milk, vegetables, meat, and fruits, but those liable under the law must comply.

He announced that old tax arrears would not be pursued, provided all such traders register under the GST and start paying the GST in the future.

The government emphasised its commitment to supporting small traders and ensuring lawful business operations. It will provide assistance for timely tax payments and enhance the existing helpline for better accessibility. The state, which ranks second in India for GST collection, shares 50 per cent of the revenue with the central government, as decided by the GST Council chaired by the Union Finance Minister.

The government assured transparent operations and help the traders in every possible way legally. Trade bodies confirmed they have not supported any bandhs and agreed to withdraw planned protests following the Chief Minister's assurances. The government reiterated its focus on empowering small traders and boosting purchasing power through various programs.

Small vendors and traders across Karnataka have raised serious concerns after receiving GST notices from the commercial tax department for UPI-based transactions exceeding Rs 40 lakh annually. They have requested that the government revoke notices, demanding a relaxation in the enforcement of these rules for small-scale vendors.

- ANI

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Reader Comments

S
Sarah B
As an expat running a small handicraft business in Bengaluru, I appreciate the clarity on GST rules. The helpline initiative will be very helpful for foreign entrepreneurs navigating India's tax system.
A
Ananya R
While the assurances are welcome, why were these notices sent without proper awareness first? Many small vendors don't understand digital transactions = taxable income. Govt should educate before enforcing!
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Vikram M
This is a sensible move by CM Siddaramaiah. Karnataka's small traders are the backbone of our economy. The one-time waiver will help many family-run shops get back on track. Jai Karnataka! 💪
K
Kavya N
My father's small textile shop received 3 notices last month. The UPI transactions included personal money transfers too! Hope the clarification about exempt goods is properly implemented at ground level.
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Michael C
Interesting to see Karnataka's approach. Other states should learn from this balanced method - supporting small businesses while maintaining tax compliance. The 50% revenue share with Centre seems fair.
P
Priya S
Awareness programs are crucial! Many small traders in rural areas don't understand GST at all. Maybe they can collaborate with local banks to explain during monthly meetings? 🤔

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