GST notice row: Won't pursue cases 2-3 years old, assures CM; traders withdraw strike call
GST
Dated:- 23-7-2025
PTI
Bengaluru, Jul 23 (PTI) 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 th
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x 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 practices.
He said the government will assist in timely tax payments and strengthen the existing helpline for better accessibility.
Several traders' associations had earlier called on these businesses to boycott UPI transactions and announced a statewide strike on Friday.
Lashing out at the ruling Congress over the matter, Vijayendra accused Siddaramaiah of setting targets for the Commercial Tax Department “The Commercial Tax Department issuing GST notices to small and micro traders has sparked widespread concern. These traders are deeply worried, while the chief minister and his ministers are attemptin
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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 b
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