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New Indian Express
an hour ago
- 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Parishat Ravi Shetty Byndoor said, 'We were assured by the Commercial Taxes Department that the GST notices would be withdrawn and that those who received the notices need not reply to it.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.'
The Hindu
5 hours ago
- Business
- The Hindu
Compulsorily register businesses under GST, Karnataka Chief Minister tells traders
Chief Minister Siddaramaiah chaired a meeting on Wednesday with traders and trade bodies, including the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), on the concerns raised by small traders regarding GST notices issued by the Commercial Taxes Department. Mr. Siddaramaiah promised traders that the government would not collect GST arrears of the past three years, following which the traders called off their protest, but told them to mandatorily register their business under the GST. He said principal goods or food items such as milk, bread, vegetables, coconut, tender coconut, meat, flowers and street vendors selling agricultural commodities are exempted from paying GST. 9,000 notices The Chief Minister said 9,000 notices were served to traders with a turnover of over ₹40 lakh a year. Traders demanded the withdrawal of GST notices that were served to them, which were tracked with the help of UPI transactions. Old tax arrears would not be pursued, provided all such traders register under the GST and start paying the GST in the future, the Chief Minister said. He said workshops would be conducted to create awareness about GST and department officials would attend the workshops. Trade union representatives, including the FKCCI, raised concerns about confusion among small traders regarding GST notices, which often include loan amounts and personal transactions. The government emphasised its commitment to supporting small traders and ensuring lawful business operations. It would provide assistance for timely tax payments, the Chief Minister said. The GST Council chaired by the Union Finance Minister decided taxes, he added. Revenue Minister Krishna Byre Gowda, Chief Secretary Shalini Rajneesh, Finance and Commercial Taxes Department officials attended the meeting. Wearing black bands On Wednesday, some traders and shopkeepers ran their businesses wearing black band, and some of them closed their business opposing the tax on UPI transactions exceeding ₹40 turnover lakh annually. The Karnataka Karmika Parishat had planned to hold a protect on Friday at Freedom Park. The Karnataka State Association of Bakeries, Condiments and Small Enterprises had planned to stage a protest on Thursday.
India Today
17 hours ago
- Business
- India Today
GST notices aimed to ensure compliance, not harass small traders: Siddaramaiah
Karnataka Chief Minister Siddaramaiah on Wednesday assured small traders that the state government will support them in addressing concerns over GST notices, after an unprecedented protest by bakeries and condiment stores disrupted tea and milk sales across the a meeting at his residence with representatives of trade unions and the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), Siddaramaiah addressed grievances about tax notices issued to small vendors for non-payment of Chief Minister clarified that the notices were sent only to those whose UPI transactions exceeded Rs 40 lakh, primarily to prompt GST registration, and that traders dealing exclusively in exempt goods like milk, vegetables, meat, and fruits would not be taxed. The meeting followed a symbolic protest earlier in the day, where bakeries and condiment shops stopped serving tea, coffee, and milk. Vendors wore black badges and only served black tea or coffee to signal dissent, accusing the Commercial Tax Department of unfairly targeting them based on digital payment activist Ravi Shetty, who joined protesters at a bakery, said, 'No bakery is selling milk today. We are wearing black bands to express our anger.'Traders complained that GST notices often wrongly included personal transactions and loan amounts, causing panic among vendors, many of whom have now switched to 'cash-only' sales or put up 'No UPI' bodies urged the government to let vendors resolve issues directly with the Commercial Tax Department, provide a one-time waiver on old tax arrears, launch a helpline, and run awareness campaigns to explain GST rules promised that old arrears would not be pursued if traders register under GST and begin paying due taxes going forward. He also announced an enhanced helpline for better Chief Minister said that the state, which ranks second nationally in GST collection and shares half the revenue with the Centre, remains committed to lawful yet supportive operations. After his assurance of transparent and fair treatment, trade bodies agreed to withdraw their call for a bandh on July 25.'We are here to help traders comply with the law and sustain their businesses. No undue harassment will be tolerated,' Siddaramaiah said, emphasising that the government would empower small vendors and boost purchasing power through various programs.- EndsTune InMust Watch IN THIS STORY#Karnataka
New Indian Express
a day ago
- Business
- New Indian Express
CM Siddaramaiah to meet with trade bodies, officials to resolve GST mess
BENGALURU: Chief Minister Siddaramaiah will meet with trade bodies along with finance department secretaries and commercial tax officers to allay the fears of small traders and street vendors on complying with GST norms on Wednesday. Over 16,000 businessmen, many of them uneducated vendors selling fruits, pan, cigarettes, vegetables, milk, and flowers or canteens, bars etc across the state have been slapped with tax demands for allegedly exceeding Rs 40 lakh in goods turnover or Rs 20 lakh in services for UPI payments since 2021. Calling the move 'unfair and insensitive,' FKCCI chairman MG Balakrishna said, 'These are poor, struggling vendors. Most don't even know what GST is. How can we expect them to understand taxable vs non-taxable income when they've never been informed? The government must educate them first-not ambush them with 18% tax.' About 25 other representatives from other trade bodies too are expected to be present in Wednesday's meeting. Balakrishna urged the state to consider a symbolic 1% levy instead of imposing the full GST retrospectively. Sources said the commercial tax department only acted after monitoring transactions for four years. Seven divisions in Bengaluru alone have been hit. Tax department sources said if they have consistently made a turnover of more than 40 lakh UPI payments then imagine the volume of cash payments, surely it is bound to be higher. Tax sources said this is not the full figure. There are about five service providers and this is the data from only two of them. Perhaps if we comprehensively take the data from all of them it could be higher. Officials said many vendors were unaware that pushcarts selling perishables like vegetables, fruits, milk, meat and flowers are tax-exempt-leading to a mistaken assumption that they are taxable.
Time of India
2 days ago
- Business
- Time of India
Karnataka government begins ‘Know GST' campaign to address small traders' UPI concerns
Bengaluru: Facing backlash from unregistered traders over Goods & Services Tax (GST) enforcement based on Unified Payments Interface (UPI) transactions, Karnataka govt has launched a statewide outreach programme to create awareness about GST. The commercial taxes department began the campaign — titled Know GST — with the first workshop held in Koramangala Monday. GST rules mandate that traders should register if their annual turnover exceeds Rs 40 lakh for goods or Rs 20 lakh for services. Earlier this month, the commercial taxes department tracked around 14,000 traders using UPI data and found that many had accepted payments beyond these thresholds. Notices were sent, triggering panic, as traders were allegedly asked to pay tax arrears from 2021-22 onwards, with some cases reaching close to Rs 40 lakh. Many traders stopped accepting QR payments, switching to cash, which affected digital transactions in the city. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru Unregistered traders have formed a forum under Karnataka Karmika Parishat (KKP) and called for a strike on July 23 and 24. They have also planned a complete shop shutdown on July 25, threatening to stop selling essential goods such as milk. "Most traders who received notices are owners of bakeries and condiment stores. UPI transactions include personal payments too, so they don't reflect business exactly. The commercial taxes department was in a slumber since GST rolled out in 2017 and has suddenly woken up to claim arrears. The move is arbitrary and illegal," KKP president Ravi Shetty Byndur said. CM's assurance Chief minister Siddaramaiah, who holds the finance portfolio, has assured traders he will take up the issue with the Centre at the next GST council meeting. He has also asked the department to address traders' concerns, prompting the Know GST campaign. "The objective is just to get eligible traders registered. Misinformation is being spread by people with vested interests. The notices we served aren't tax demands — we haven't assessed the tax yet. We are only asking traders to submit transaction details," said commercial taxes commissioner Vipul Bansal. Byndur, however, dismissed this claim and said they have received tax demands. The department has set up a helpline (1800 425 6300) to let traders report harassment or bribery. Workshops will soon be expanded across the state. According to Byndur, however, officials have threatened traders with penalties for non-compliance since 2021-22. He accused the department of trying to divide traders by launching the campaign after the strike call. Larger trade bodies such as the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) have backed the agitators. "It's unfair to demand tax suddenly from small traders without educating them. FKCCI will stand by the traders," its president MG Balakrishna said. Dept clarifies, but traders unsatisfied Several small traders Monday expressed dissatisfaction with the clarification issued by the commercial taxes department, saying it failed to address their concerns over the recent GST filing notices. More than 70 traders attended the session organised by the department and argued that the enforcement would hurt their margins and increase the burden on small businesses. Traders said the official explanation lacked clarity and didn't offer any assurance of relief or exemption for smaller players. At the session, addressed by Meera Suresh Pandit, joint commissioner, commercial taxes (administration), several vendors raised questions. The officials responded by saying they were only implementing central rules that have existed since 2017. Here are some key issues raised: Business is already in losses A trader who has been supplying goods to smaller shops for 25 years said: "Because of too much competition and high prices, business is already low. We're barely making profits. Why the new taxation? It will only hurt traders more." Pandit responded: "This isn't something we implemented. It is part of the GST rules from 2017. After UPI transactions increased, the govt asked us to implement them. The buyer will be paying you taxes for the goods for which you will be paying us. States like Uttar Pradesh, Andhra Pradesh, and Tamil Nadu have already enforced this." Too much for small traders A kirana store owner from central Bengaluru asked: "Don't you think the taxes are too much for a small trader? Why can't you relax the rules to Rs 1 crore for goods and Rs 50 lakh for services?" The official replied: "We sent the representations as communication, not final notices. If traders think the rates are high, they can submit a representation to the govt through associations like FKCCI. A decision will be taken by the higher authorities." My income is Rs 11L, why did i get a notice? A 40-year-old small shop owner said: "I sell cool drinks and cigarettes. My yearly income is Rs 11.7 lakh, but I still received a notice asking me to pay GST." The official responded: "If your income is below the tax slab, you can step into the office help desk with your receipts and income proof. We can withdraw the certificate if it is found that you are not liable."
