In a press conference following the meeting, the Chief Minister addressed the confusion surrounding the GST notices and provided key clarifications and relief measures.
‘18,000 GST notices issued in Karnataka in three years’
Bengaluru
A total of 18,000 GST notices have been issued to just 9,000 small business owners in Karnataka over the past 2–3 years, revealed Chief Minister (CM) Siddaramaiah during a high-level meeting held today with trade body representatives and officials from the Commercial Tax Department.
In a press conference following the meeting, the Chief Minister addressed the confusion surrounding the GST notices and provided key clarifications and relief measures for affected small traders.
Only businesses that had UPI transactions exceeding ₹40 lakh were issued GST notices, officials said. These were not arbitrary, Siddaramaiah added, but based on verifiable financial activity. He clarified that essential goods such as milk, vegetables, fruits, meat, and flowers are tax-exempt, and no tax will be collected from traders dealing solely in these categories, even if they received a notice.
“The intention is not to harass small traders. The government is on their side,” the CM stated. He also announced that old tax arrears included in the notices will be waived off, but added that GST registration will now be mandatory for those crossing the turnover threshold.
Representatives from several traders’ associations, including the FKCCI and street vendor bodies, submitted memorandums expressing confusion about the notices, citing the inclusion of loan amounts and personal transactions in the GST assessments. They urged the government to allow direct resolution without intermediaries and requested a dedicated helpline.
Responding to their concerns, the CM directed officials to launch awareness programs and workshops across the state to educate traders about GST. He also stressed the need for transparent communication and instructed the department to enhance the effectiveness of the existing helpline.
Traders’ representatives, who had earlier threatened to launch protests over the issue, have now withdrawn their plans, expressing satisfaction over the government’s clarifications and assurances.
The CM emphasised that the GST framework is governed by the GST Council, chaired by the Union Finance Minister, and 50% of the GST revenue collected is allocated to the state. Karnataka currently ranks second in the country for GST collections.