Latest news with #CommercialTaxesDepartment
Hindustan Times
3 hours ago
- Business
- Hindustan Times
Karnataka launches ‘Know GST' drive to calm UPI-linked tax panic among traders: Report
With anxiety spreading among small and unregistered traders over tax notices linked to UPI payments, the Karnataka government has launched a statewide awareness initiative titled 'Know GST'. The campaign aims to clarify Goods & Services Tax (GST) norms and ease fears.(Shutterstock) The campaign aims to clarify Goods & Services Tax (GST) norms and ease fears that have led to a noticeable drop in digital transactions across the state. The first workshop under the initiative was held on Monday in Koramangala, Bengaluru, by the Commercial Taxes Department. Officials explained GST rules and thresholds, seeking to reassure traders who have recently come under scrutiny, the Times of India reported. (Also Read: 'Bengaluru isn't easy, but...': Techie's viral goodbye post hits home for city dwellers) Under GST law, traders must register if their annual turnover exceeds ₹40 lakh for goods or ₹20 lakh for services. However, earlier this month, the department used UPI transaction data to track around 14,000 unregistered traders, many of whom had reportedly accepted payments beyond these limits. The department then issued notices to these traders, in some cases demanding tax arrears dating back to 2021-22, with amounts going up to ₹40 lakh. The sudden enforcement action sparked widespread panic. Many traders immediately stopped accepting QR code-based payments and reverted to cash-only transactions, impacting the broader digital payments ecosystem in the city. In response, unregistered traders have formed a new forum under the Karnataka Karmika Parishat (KKP) and announced a two-day strike on July 23 and 24, followed by a statewide shop shutdown on July 25. They have also threatened to halt the sale of essential goods like milk, if their concerns remain unaddressed. Chief Minister Siddaramaiah, who also holds the finance portfolio, has stepped in to defuse the situation. He has assured protesting traders that the matter will be raised at the upcoming GST Council meeting. He has also directed the Commercial Taxes Department to engage with traders and resolve their concerns, leading to the rollout of the Know GST campaign. Among other leader, BJP MLA S Suresh Kumar has weighed in on the issue, pledging to take it up with Chief Minister Siddaramaiah. He emphasized the need to safeguard the interests of small-scale entrepreneurs amid the ongoing concerns. (With agency inputs) (Also Read: Bengaluru ranked fifth dirtiest among major Indian cities in Swachh Survekshan 2025)
The Hindu
18 hours ago
- Business
- The Hindu
GST notice: State and Centre have to agree on reprieve for small traders
Small traders and businessmen, who have come under the lens of the Commercial Taxes Department over the non-payment of Goods and Services Tax (GST) over the last four years for UPI transactions, can get a reprieve only if the State and the Central governments agree to a solution. While the department is learnt to have issued notices to over 10,000 businesses based on the UPI transactions, it is difficult for the government to waive the penalty/interest or the tax burden, department officials say. Deputy Chief Minister D.K. Shivakumar claimed that the number of notices could be about 14,000, and said that the State would write to the Centre to withdraw notices, and blamed the BJP for the current problem. 'Both governments have to decide in the GST Council on the future course of action since both the State and the Central GST are involved,' an official said, adding that trade bodies and associations could petition the government over the inability of traders to pay tax retrospectively. Based on information from PhonePe and Paytm, traders offering goods and who have exceeded ₹40 lakh in UPI transactions per annum and those offering services and who have exceeded ₹20 lakhs in transactions per annum have been issued the notices. Sources said that Google Pay transactions are yet to be assessed. 'Because the tax liability can be flagged for the previous four years, the notices have been issued from 2021-2022 and till January 2025 when the department received data,' a senior Commercial Tax official explained. On Monday, officials also interacted with anxious small traders, who came to clarify their doubts, and explained the reason behind issuing the notices. 'Notice is a mode of communication or an intimation. Traders need not be worried. If exempted goods were handled, the notices will be withdrawn. The department will hear from traders and businesses will be assessed before the tax demand is issued,' Joint Commissioner of Commercial Tax Meera S. Pandit told the audience. The exempted goods include vegetables, fruits, flowers, milk, unbranded or unpacked foodgrains, handicrafts, petrol, diesel, and liquor. If the trader is selling other than exempted goods in his shop, the GST will apply to those goods only, the department has clarified. On the 18% GST demand raised in the notices, the official clarified: 'Based on the documents provided on the transactions and other information, the final tax demand could come down. The demand can only be lowered but not increased when the demand order is issued'. She pointed to similar exercises being carried out in Gujarat, Tamil Nadu, and Andhra Pradesh. 'Though the notices have asked the traders to respond within seven or 10 days, sufficient time would be provided. Three reminders will be sent and officials will also call the trader on phone. The assessment will be based on the best judgment and closer to reality if documents cannot be provided. The tax demand is not to trouble anyone or dip into profits,' Ms. Pandit said. Meanwhile, after the outcry by traders, the department has changed the format for issuing notices. While initial notices provided details of transactions, possible tax liabilities at the rate of 18% GST, interest and penalty, currently notices are being issued to traders, intimating them of transaction of over ₹40 lakh, which requires registration under the GST regime.
New Indian Express
a day ago
- Business
- New Indian Express
Tax notices: Small traders across Karnataka to shut shops on July 25
BENGALURU: Small traders and vendors across Karnataka will stage a symbolic protest on July 25 by shutting down their businesses in protest against the 'unjust tax demands' from the Commercial Taxes Department. A massive protest is also scheduled at Freedom Park in Bengaluru, where lakhs of small business owners and their families are expected to gather from across the state. The Karnataka State Workers' Council, which is spearheading the protest, says small businesses have received backdated tax notices ranging from Rs 20 lakh to Rs 50 lakh, dating back to 2021. These notices, they alleged, were issued without any prior information or explanation. The protestors include owners of bakeries, vegetable and fruit shops, flower stalls, tea sellers and meat shops. Ahead of the protest, on July 23 and 24, traders will wear black armbands while conducting businesses. They also plan to stop the sale of milk, tea, coffee and milk-based products on these two days. The businesses have appealed to all traders to voluntarily join the bandh and participate in the July 25 rally.
The Hindu
2 days ago
- Business
- The Hindu
CM says Karnataka will take up issue of GST notices to small traders with Centre
Chief Minister Siddaramaiah on Sunday said the State government will take up with the Centre the issue of small traders getting GST notices from the Commercial Taxes Department for transactions through UPI. He also made it clear that the issue would be discussed with the State Commercial Taxes Department before making a decision in this regard. 'The Goods and Sales Tax (GST) Council comes under the purview of the Centre. However, the State government will take up the matter with the Union government and discuss it with the State's Commercial Taxes Department, and take a decision,' Mr. Siddaramaiah told presspersons in Mysuru. It may be noted that a section of the small and micro traders in the State have taken exception to getting notices with respect to taxes based on their transactions via UPI. Meanwhile, asking the small traders not to worry about the GST-related notices, Deputy Chief Minister D.K. Shivakumar accused the Union government of creating trouble for small traders and street vendors by introducing GST. 'Notices are being issued to those who are conducting business of over ₹40 lakh,' he said in Hoskote, near here, where an event was organised to distribute government benefits. He said: 'This is the achievement of the Union government. The traders do not have to worry. We will take necessary actions to protect their interests.' The Deputy Chief Minister said though the State had appealed to the Centre several times seeking funds over the last two years, the BJP MPs are not speaking. 'They are not concerned about the poor in the State.' Accusing the BJP of not doing enough, he said that the Congress government was committed to getting Yettinahole waters to Bengaluru North district before 2027 and the government had decided to prepare a DPR to bring metro to Hoskote. 'We will ensure it is approved during our term.' Mr. Shivakumar also pointed out that the government had taken steps to regularise B-khata properties in Bengaluru, and that over a crore patta khatas are being given to Scheduled Tribes.
The Hindu
2 days ago
- Business
- The Hindu
I do not expect BJP to come to a public debate on development works in Karnataka: CM
Chief Minister Siddaramaiah said he does not expect the BJP leaders to come to a public debate on the development works in the State, in response to his invitation. When asked if he expected the BJP leaders to take part in a debate, Mr. Siddaramaiah said he had invited them several times earlier also. 'People who lie do not come,' he said, dubbing the BJP leaders as 'liars'. However, the Chief Minister said he was ready to participate in the debate if the BJP leaders came forward. The Congress government organised a convention in Vijayanagar earlier this year to mark two years of its rule in the State, he said, adding that the 'BJP's lies' about the State government were exposed with more than two lakh people participating in the programme. The State government was spending ₹52,000 crore every year on the guarantee programmes. He said the BJP, which criticises the State government, had copied its guarantee programmes in other States. GST WOES OF SMALL TRADERS With regard to complaints of small traders receiving notices from the Commercial Taxes Department for transactions through UPI, Mr. Siddaramaiah said his government will discuss the matter with the Centre and the department and will make a decision. He said Goods and Sales Tax (GST) Council does not come under the State government. However, the government will take up the matter with the Union government and discuss it with the State's Commercial Taxes Department. When asked about the invitation extended by Andhra Pradesh Chief Minister Chandrababu Naidu's son and Minister for Information and Technology Nara Lokesh to companies to invest in their State following Karnataka government's decision to drop notification for land acquisition in Devanahalli, Mr. Siddaramaiah expressed confidence that no company will leave Karnataka. 'We did not say that we will not give land to investors. We will give land. No industry will leave Karnataka,' Mr. Siddaramaiah said, ruling out any capital flight from Karnataka despite the 'politics' played by Mr. Naidu and his son.
