Bengaluru (Karnataka) [India], July 23 (ANI): Karnataka Chief Minister Siddaramaiah chaired a meeting with representatives of various trade unions on Wednesday to discuss concerns over GST notices issued to small traders for non-payment of taxes. The meeting addressed grievances and proposed solutions to support small businesses.

Trade union representatives, including the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), raised concerns about confusion among small traders regarding GST notices, which often include loan amounts and personal transactions. They urged the government to allow traders to directly resolve issues with the Commercial Tax Department without intermediaries and to provide sufficient time to settle dues.

Suggestions included launching a dedicated helpline and conducting awareness programs to clarify GST regulations. They also requested a one-time waiver of old tax arrears.

The Chief Minister clarified that notices were issued only to traders with UPI transactions exceeding Rs. 40 lakh, initially to prompt GST registration. He assured that no taxes would be collected from traders dealing in exempt goods, such as milk, vegetables, meat, and fruits, but those liable under the law must comply.

He announced that old tax arrears would not be pursued, provided all such traders register under the GST and start paying the GST in the future.

The government emphasised its commitment to supporting small traders and ensuring lawful business operations. It will provide assistance for timely tax payments and enhance the existing helpline for better accessibility. The state, which ranks second in India for GST collection, shares 50 per cent of the revenue with the central government, as decided by the GST Council chaired by the Union Finance Minister.

The government assured transparent operations and help the traders in every possible way legally. Trade bodies confirmed they have not supported any bandhs and agreed to withdraw planned protests following the Chief Minister's assurances. The government reiterated its focus on empowering small traders and boosting purchasing power through various programs.

Small vendors and traders across Karnataka have raised serious concerns after receiving GST notices from the commercial tax department for UPI-based transactions exceeding Rs 40 lakh annually. They have requested that the government revoke notices, demanding a relaxation in the enforcement of these rules for small-scale vendors. (ANI)