Bengaluru, July 24, 2025: A significant meeting led by Karnataka Chief Minister, Siddaramaiah, took place Wednesday (July 23), convening with emblematic figures from trade unions such as the influential Federation of Karnataka Chambers of Commerce and Industry (FKCCI). The central topic of discussion revolved around the concerns raised by small-scale traders pertaining to Goods and Services Tax (GST) non-compliance notices. The assembly, held in Bengaluru's commercial epicenter, aimed to streamline the GST compliance process and bolster the state's vital small business sector.
Traders Raise Compliance Concerns
Trade unions have expressed concern regarding the perplexity faced by small traders as a result of GST notices that frequently encompass loan figures and personal financial dealings. These unions are advocating for a governmental provision that would enable these traders to resolve their issues directly with the Commercial Tax Department, thereby eliminating the need for intermediaries. Among their other pressing demands are the establishment of a specialized helpline, the implementation of comprehensive awareness campaigns aimed at elucidating GST regulations, and a single-time waiver for pre-existing tax arrears. This call for action is intended to streamline the taxation process and provide relief to the affected businesses.
CM’s Assurance to Traders on GST Policies
Chief Minister Siddaramaiah clarified that the issuance of GST notices, stating that they are solely intended for traders with UPI transactions surpassing Rs. 40 lakh, as part of an effort to boost GST registration. He has also assured that those dealing in exempt goods, such as milk, vegetables, meat, and fruits, will not be subject to tax demands. The Chief Minister has emphasized the importance of compliance for those obligated under the law and has encouraged them to register for GST to avoid any issues in the future.
In a substantial move to alleviate concerns, Siddaramaiah announced that the government will not pursue old tax arrears if traders choose to register under the GST system and commit to regular tax payments. Additionally, Karnataka’s administration pledges to enhance the accessibility of its existing helpline services to assist businesses in understanding and adhering to GST regulations.
Karnataka holds the second position in India in terms of GST collection, contributing 50% of its revenue to the central government, as per the guidelines set by the GST Council, which is chaired by the Union Finance Minister. The state government remains steadfast in its dedication to transparency and has reaffirmed its support for small traders, ensuring they are informed and compliant with the legal framework governing their operations.
Trade Bodies Halt Protests After Chief Minister's Assurances
In a recent development, the Chief Minister's guarantees have led to trade organizations, such as the FKCCI, deciding against backing any further bandhs. These entities have consented to pull back from their scheduled protests. The government has highlighted its commitment to enhancing the capabilities of small-scale traders and stimulating consumer purchasing power through various initiatives, thus fostering a conducive business atmosphere across the state.
Keywords: Karnataka, Siddaramaiah, GST notices, small traders, trade unions, FKCCI, GST compliance, tax arrears, helpline, Bengaluru, GST Council, small businesses, UPI transactions, tax exemptions, commercial tax department
