Latest news with #CommercialTaxesDepartment
New Indian Express
24-07-2025
- Business
- New Indian Express
Strike called off after word from Commercial Taxes department: Karnataka traders
BENGALURU: Small-Scale traders and vendors, who were protesting against the Goods and Service Tax (GST) notices linked to the Unified Payments Interface (UPI) transactions exceeding Rs 40 lakh per year, called off their protest on Wednesday. All bakeries, condiments and other small businesses will operate as usual from Thursday. Speaking to TNIE, President of Karnataka Karmika Parishat Ravi Shetty Byndoor said, 'We were assured by the Commercial Taxes Department that the GST notices would be withdrawn and that those who received the notices need not reply to it. We were also assured that the tax arrears as claimed in the GST notices will not be pursued. These were our major demands and they have been addressed.' Thousands of small-scale traders and vendors were on a protest by wearing black bands and ribbons over their foreheads and arms and were gearing up for a one-day bandh on Friday. As part of the protests, bakery and condiment shop owners chose not to sell milk and allied products like curd, buttermilk, tea, which are their major source of revenue, on Wednesday. Byndoor said that they boycotted the meeting called by Chief Minister Siddaramaiah related to the GST issue and later withdrew the protest after the promise of fulfilling their demands by the Commercial Taxes Department. Byndoor said that going forward, the department will hold GST tax awareness workshops and added that they have requested the traders with turnover exceeding Rs 40 lakh annually to get GST registration and begin compliance. FKCCI lauds CM's outreach to traders on GST notices The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) lauded Chief Minister, stating that he addressed the concerns of small traders regarding the recent GST notices issued. FKCCI President M G Balakrishna said, 'The government's assurance that goods traders will not be taxed and that arrears will be waived upon registration has restored traders' confidence.' He added, 'The CM has emphasised that the government is for the poor and the working class. Empowering small traders increases purchasing power and drives grassroots economic growth. FKCCI will now intensify its support by organising handholding programs and digital literacy workshops to facilitate GST registration and compliance.'
Hans India
24-07-2025
- Business
- Hans India
Won't pursue 2-3 years old cases, assures CM
Bengaluru: With small traders in Karnataka going on the warpath over the government issuing GST notices based on UPI transactions and the opposition backing them, the state government on Wednesday announced that cases ranging between 2-3 years won't be pursued, prompting the trade bodies to call of their proposed agitation on July 25. Although, the government asserted that the action of issuing notices was within the framework of law. On Wednesday, Chief Minister Siddaramaiah held discussions with traders' associations, which raised concerns about confusion over the GST notices, many of which include loan amounts and personal transactions. State BJP President B Y Vijayendra accused the CM of setting targets for the Commercial Taxes Department, which had issued the notices to small and micro traders. While urging the government to withdraw the notices, the main opposition party also extended its support to the traders' earlier call to strike work on July 25. The CM said that old tax arrears will not be pursued, provided all such traders register under the GST Act and begin paying Goods and Services Tax moving forward. 'I told the traders not to go on strike or stage a demonstration at Freedom Park. They have agreed to withdraw their agitation,' the CM told reporters after meeting with the trader community. He added that 'we will not collect taxes from traders dealing in exempted goods, even if notices have been issued. I have also instructed officials not to pursue cases related to notices for clearing arrears from the past two to three years.' The chief minister said the government will not pursue these arrears and will ensure traders do not face problems—provided they register with the Commercial Taxes Department. 'Traders must register. Registration is mandatory because everyone needs to be brought within the tax net,' he said. He clarified that businesses dealing exclusively in exempted goods will not be required to register. The chief minister, in a statement, said that notices were issued only to traders with UPI transactions exceeding Rs 40 lakh, primarily to prompt GST registration. Siddaramaiah reaffirmed his commitment to supporting small traders and ensuring lawful business said the government will assist in timely tax payments and strengthen the existing helpline for better accessibility. Meanwhile, Meera Suresh Pandit, Joint Commissioner of Commercial Taxes, clarified that notices are not final tax demands and the recipients have the right to respond with supporting documentation. If the reply is convincing or the goods and services are exempted under the GST Act, notices will be dropped. The top tax official termed the issuing of notices as within the framework of law. 'When a person reaches the threshold limit of Rs 20 lakh for services or Rs 40 lakh for goods, it is mandatory for the person to get registered under the GST Act to take registration and declare his turnover,' the officer told PTI. 'The registration empowers the trader to collect taxes from the consumers and pay it to the government. These taxes are meant for the government, but when the dealers collect them and fail to remit them, they are treated as unregistered persons, and we issue notices accordingly,' she added. The department, she said, cannot individually identify every trader evading registration. Instead, the Services Analysis Wing at the department's head office used reliable sources such as UPI transaction data to flag potential defaulters. 'If a person has transacted over Rs 20 lakh for services or Rs 40 lakh for goods in a year through UPI, it indicates that they may be liable to register under GST,' Pandit said, adding that notices were based only on preliminary data, not final determinations. Trade activist Sajjanraj Mehta raised concerns over the fairness of the recent GST stated that while the Commercial Taxes Department is legally within its powers to use such data, the lack of prior warning, context, and education has created confusion. 'Many small traders were unaware that their UPI inflows, often a mix of business and personal transactions, would be treated as undeclared turnover,' Mehta said.
Hindustan Times
23-07-2025
- Business
- Hindustan Times
CM Siddaramaiah says 3-yr-old tax arrears won't be pursued, traders call off strike
Bengaluru, Karnataka Chief Minister Siddaramaiah on Wednesday announced that the state government will not pursue tax notices issued to traders for arrears on exempted goods and services over the past three years. Following this, traders agreed to call off their planned strike on July 25 in the city. CM Siddaramaiah says 3-yr-old tax arrears won't be pursued, traders call off strike The protest had been triggered by tax notices linked to Unified Payment Interface transactions, with traders in parts of Bengaluru and across Karnataka "calling for a boycott of UPI payments." According to the Commercial Taxes Department, around 6,000 such notices were issued across the state based on UPI transaction data. "Old tax arrears will not be pursued, provided all such traders register under the GST and begin paying GST moving forward," Siddaramaiah added. "I told the traders not to go on strike or stage a demonstration at Freedom Park. They have agreed to withdraw their agitation," the chief minister told reporters after meeting with the trader community. Siddaramaiah said, "We will not collect taxes from traders dealing in exempted goods, even if notices have been issued. I have also instructed officials not to pursue cases related to notices for clearing arrears from the past two to three years." Trade bodies, including those from the Federation of Karnataka Chambers of Commerce and Industry , raised concerns about confusion among small traders over GST notices, many of which include loan amounts and personal transactions. The chief minister said the government will not pursue these arrears and will ensure traders do not face problems—provided they register with the Commercial Tax Department. "Traders must register. Registration is mandatory because everyone needs to be brought within the tax net," he said. He clarified that businesses dealing exclusively in exempted goods will not be required to register. "We will not pursue notices pertaining to goods and services that are exempted—such as bread, milk, essential food items, fruits and vegetables, flowers, and tender coconut," Siddaramaiah explained. He also announced the setting up of a helpline. "There is no need to register with the Commercial Taxes Department for exempted goods. We will not take any action regarding such notices," the chief minister reiterated. The chief minister, in a statement, clarified that notices were issued only to traders with UPI transactions exceeding ₹40 lakh, primarily to prompt GST registration. Siddaramaiah reaffirmed his commitment to supporting small traders and ensuring lawful business practices. He said the government will assist in timely tax payments and strengthen the existing helpline for better accessibility. Karnataka ranks second in India in GST collection and shares 50 per cent of its GST revenue with the Centre, as determined by the GST Council chaired by the Union Finance Minister Nirmala Sitharaman, according to the statement from the chief minister's office. The government reiterated its focus on empowering small traders and boosting purchasing power through various initiatives. This article was generated from an automated news agency feed without modifications to text.
The Hindu
22-07-2025
- Business
- The Hindu
Bakeries, condiments and small enterprises protest against GST notices on July 24
The Karnataka State Association of Bakeries, Condiments and Small Enterprises has organised a protest rally at Freedom Park on Thursday, to protest the 'unscientific' Goods and Services Tax (GST) notices issued by the Commercial Taxes Department to small-scale traders. D.B. Pratap Shetty, president of the association, expressed concern over the GST notices to small-scale businesses like condiments stores, bakeries, milk sellers, vegetable vendors, and others, and said these notices had created a sense of fear among traders. These notices have been issued based on transactions in their UPI payment gateway linked accounts. 'Most of our transactions — over 95% — are through digital payments,' Mr. Shetty said, and warned that if their issues are not sorted out, they will launch a State-wide protest against the UPI payment system. 'We will begin a campaign to break UPI scanners as a mark of protest,' he warned. He alleged that traders with annual transactions between ₹20 lakh and ₹40 lakh are being served notices, which goes against the standard GST norms. While demanding the withdrawal of such notices, the association has demanded that the government allow traders with turnover exceeding ₹40 lakh per year to settle their dues under the presumptive tax scheme by paying a flat 1% tax based on available records.
NDTV
22-07-2025
- NDTV
Bengaluru Man's UPI Standoff With Auto Driver Sparks Outrage, Viral Post Backfires
A Bengaluru man is being trolled on social media for a post where he claimed not to pay an autorickshaw driver after the latter refused to accept payment through UPI. As the post went viral, social media users slammed the man for denying the driver money for the service he provided. "Auto guy denied UPI today morning. I said, I am not going to pay cash. He threatened a bit. He had already marked paid on the app for the ride. I said either UPI or I will not pay. I started recording his convo," the man wrote on X (formerly Twitter). As the situation escalated, the driver brought someone else but the man refused to make the payment and walked away. "He called someone and asked what to do. The man on the phone wanted to talk to me. I said, I will not talk to any random person. I said: Either show QR code or number or I am walking away He said, if you have guts walk away. I walked away." See the post here: Auto guy denied UPI today morning. I said, I am not going to pay cash. He threatened a bit. He had already marked paid on the app for the ride. I said either UPI or I will not pay. I started recording his convo. — Ajay Prabhu (@ajayprabhun) July 21, 2025 The post led to instant backlash from the users, who called him out for his actions and the boastful nature of his post. "You are legally required to pay for the service availed. The auto man is not legally required to have UPI. You are NOT a hero here," said one user while another added: "Poor auto driver. Asked for legal tender, and had his day ruined by recording warrior. He even tried to get someone to mediate and got killed by righteous bro." A third commented: "Didn't pay an auto driver and just walked off because he said pay cash?! What a lowlife." In a subsequent comment, the man admitted that 'cash' was the only mode of payment in the app, which further riled the users. Bengaluru's UPI troubles In recent weeks, Bengaluru vendors have started refusing UPI payments due to fears of tax demands after the Commercial Taxes Department identified unregistered traders. Signs reading 'No UPI, Only Cash' are appearing across roadside stalls, food carts, and local stores, with autorickshaw drivers seemingly following suit as well. The panic spread after Karnataka's Commercial Taxes Department used UPI transaction data to identify 14,000 unregistered traders who had allegedly received digital payments beyond the threshold that mandates Goods and Services Tax (GST) registration.
