Karnataka waives traders’ old GST dues, but CM says registration must
CM Siddaramaiah announces full waiver of past tax dues from UPI transactions, but asserts that GST registration is mandatory for all traders
After days of protest by trade organisations, the Karnataka government has finally addressed the confusion and anxiety caused by GST notices issued to thousands of small traders based on UPI transactions.
Chief Minister Siddaramaiah has said the old tax dues for which notices have been issued will be completely waived, but everyone must mandatorily register for GST. In light of this decision, trade organizations have withdrawn all their protests.
This decision was made on Wednesday (July 23) during a meeting chaired by Siddaramaiah with representatives of various trade organizations regarding the GST notices issued by the Commercial Tax Department.
Also read: Bengaluru vendors ditch UPI as GST crackdown triggers protest
Traders’ concerns
Representatives of trade organizations said at the meeting, “There is severe confusion among small traders regarding the GST notices. Personal and loan transactions have also been considered business transactions. This issue has arisen due to a lack of accurate information about GST. Therefore, the old dues should be waived off, and a helpline should be started.”
Responding to the traders’ concerns, Chief Minister Siddaramaiah clarified, “It is not the government’s intention to harass traders. The government is on the side of small traders. There are tax exemptions for traders of essential goods like milk, vegetables, fruits, and meat, and even if notices are issued to them, tax collection will not take place. However, those who are legally required to pay taxes must do so.”
Also read: SBI Research calls for sensitive GST enforcement amid Karnataka UPI row
Registration mandatory
Siddaramaiah assured the traders that the government will not collect the old tax dues for which notices have been issued; those will be waived. “However, everyone must mandatorily register for GST. The government will provide all assistance to conduct your business transactions legally,” he asserted.
In the past two or three years, some 9,000 traders who conducted over 4 million UPI transactions together have received 18,000 notices. The CM stated that Karnataka ranks second in GST collection in the country and will operate transparently.
Representatives of trade organizations, satisfied with the decision, clarified that they would withdraw all forms of protests, including bandhs.
(This story originally appeared in The Federal Karnataka)