‘Won't Go For Tax Recovery': Karnataka CM After Vendors Get GST Notices For UPI Transactions
Karnataka vendors had called for boycott of UPI transactions and announced a protest on July 25. Chief Minister Siddaramaiah has reacted to the development.
Karnataka Chief Minister Siddaramaiah on Wednesday clarified that the state government would not recover taxes from street vendors selling exempted goods and services.
This comes after a section of small and micro traders across the state objected to receiving GST notices linked to their UPI transactions. Several traders' associations appealed to these businesses to boycott the UPI transactions and announced a statewide strike on July 25.
Siddaramaiah said that the traders have agreed to drop the protest that was called on July 25.
'Even if notices have been issued, we won't go for tax recovery. Traders have agreed to drop the protest called on 25th. We have asked for compulsory registration," the Chief Minister said.
Small vendors and traders across the state raised serious concerns after getting GST notices from the commercial tax department for UPI-based transactions that exceeded Rs 40 lakh annually. They had urged the government to revoke these notices and demanded a relaxation in the enforcement of these rules for small-scale vendors.
He also extended the BJP's support to the protest called by the traders across the state.
'The Commercial Tax Department issuing GST notices to small and micro traders has sparked widespread concern. These traders are deeply worried, while the chief minister and his ministers are attempting to shift the blame on the Centre," Vijayendra said.
He also pointed out Siddaramaiah's earlier public statement that 'Karnataka must surpass Maharashtra to become number one in GST collection". The BJP leader said that the Chief Minister had set revenue targets for officials.
'At a time when the state coffers are empty, the CM is pressuring tax officials to issue recovery notices. I urge the chief minister to immediately halt the issuance of these notices to small and micro traders and to withdraw those already served," he said.
(With inputs from agencies)
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First Published:
July 23, 2025, 17:08 IST
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