Karnataka Chief Minister Siddaramaiah has assured traders that no taxes will be collected from those dealing in exempt goods such as milk, vegetables, meat, and fruits. However, he emphasised that traders liable under existing laws must comply with GST regulations.

In a significant relief, the CM announced that old tax arrears will not be pursued, provided all such traders register under GST and begin paying taxes going forward.

The announcement came during a meeting with representatives of various trade unions today, including the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), to address concerns over GST notices issued to small traders for non-payment of taxes.

Raised concerns

Trade representatives raised concerns about widespread confusion among small traders regarding GST notices, which often include loan amounts and personal transactions. The CM clarified that notices were issued only to traders with UPI transactions exceeding ₹40 lakh, initially intended to prompt GST registration.

“The government is committed to supporting small traders while ensuring lawful business operations,” Siddaramaiah said. The state will provide assistance for timely tax payments and enhance the existing helpline for better accessibility.

Karnataka, which ranks second in India for GST collection, shares 50% of its revenue with the central government as per GST Council decisions chaired by the Union Finance Minister.

Following the Chief Minister’s assurances, trade bodies confirmed they have withdrawn planned protests and will not support any bandhs. The government reiterated its focus on empowering small traders and boosting purchasing power through various programs.

Source: The Hindu Business Line