K'taka CM Siddaramaiah addresses GST notice concerns in trade union meeting

Bengaluru, July 23 Karnataka Chief Minister Siddaramaiah on Wednesday held a meeting with representatives of various trade unions 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.

Chief Minister Siddaramaiah 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 like milk, vegetables, meat, and fruits, but those liable under the law must comply.

The Chief Minister further 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. Registration is not required for those who sell exempted goods.

CM Siddaramaiah has stated that he has asked the trade bodies to withdraw the agitation on July 25 at the Freedom Park. They have assured me that no protest will be staged. They have dropped all types of protests planned till July 25, he added.

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, CM Siddaramaiah stated.

The government also 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 programmes, CM Siddaramaiah stated.

"The Commercial Tax Department had issued 9,000 notices. Notices were issued to those conducting transactions above Rs 40 lakh, asking them to pay 1 per cent tax. It is the central government that imposes GST, not the state government. We have only directed that GST registration be made mandatory. In the meeting, the traders agreed to register under GST," he said.

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.

However, Karnataka State Karmika Parishat President Ravi Shetty said: "There will be no rollback of the protest on July 25. Those who originally called for the protest have been excluded from the meeting, which is not right. All bakeries, condiment stores, and shops will remain closed, and the protest will be staged as planned."

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