Siddaramaiah's GST Deal: Register Now, Avoid Backlog Payments
Chief Minister Siddaramaiah offers GST relief in Karnataka: old tax dues scrapped if traders register. Click to know more.
Karnataka CM Mandates GST Registration, Forgives 3 Years of Arrears
Karnataka Chief Minister Siddaramaiah has directed traders in the state to mandatorily register their businesses under the Goods and Services Tax (GST) regime, a move that comes alongside a significant concession: the government will not pursue GST arrears from the past three years. This decision, announced after a meeting with various trade bodies, including the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), aims to resolve ongoing disputes and encourage broader GST compliance.
The Chief Minister's directive follows widespread concern among small traders who had received approximately 9,000 GST notices, many reportedly tracked through UPI transactions, for turnovers exceeding ₹40 lakh annually. While the notices sparked protests, including some traders operating with black armbands or temporarily closing shops, the government's promise to forgo old tax arrears, contingent on future GST registration and payments, has led to the cessation of these planned demonstrations.
Key goods and food items, such as milk, bread, vegetables, coconut, tender coconut, meat, flowers, and agricultural commodities sold by street vendors, remain exempt from GST.
To alleviate confusion and facilitate compliance, the Chief Minister announced that workshops would be conducted to raise awareness about GST regulations, with department officials actively participating. Trade union representatives had highlighted the complexity of GST notices, which sometimes erroneously included loan amounts and personal transactions, leading to distress among small business owners.
The Karnataka government reiterated its commitment to supporting small traders and fostering lawful business operations, emphasizing its role in assisting with timely tax payments. The Chief Minister also clarified that GST rates and policies are determined by the GST Council, chaired by the Union Finance Minister.
The meeting saw the presence of Revenue Minister Krishna Byre Gowda, Chief Secretary Shalini Rajneesh, and officials from the Finance and Commercial Taxes Departments, underscoring the government's collaborative approach to addressing the traders' concerns.
