Chief Minister Siddaramaiah clarified that notices had been sent only to traders whose UPI transactions exceeded ₹40 lakh, and that the intent was to prompt GST registration.
Published Jul 24, 2025 | 12:10 AM ⚊ Updated Jul 24, 2025 | 12:10 AM
Karnataka CM Siddaramaiah. (X)
Synopsis: A day after protests erupted over GST notices to small traders, Karnataka CM Siddaramaiah met trade union representatives on Wednesday to address their concerns and clarified that only those with over ₹40 lakh in UPI transactions were issued notices. He assured that traders dealing in exempt goods would not be taxed and promised support measures, including improved helplines, awareness programmes, and legal aid. Following his assurances, trade bodies have agreed to withdraw the proposed bandh.
Karnataka Chief Minister Siddaramaiah met representatives of various trade unions on Wednesday, 23 July to address concerns over GST notices issued to small traders, a day after protests erupted in parts of the state.
The protests were triggered by “absurd” tax notices issued to small traders and vendors based on their Unified Payments Interface (UPI) transactions, leading to traders in parts of Bengaluru and across Karnataka calling for a boycott of UPI payments.
Karnataka currently ranks second in the country in GST collection and shares 50 percent of the revenue with the central government, as per the GST Council headed by the Union Finance Minister.
The meeting aimed to address grievances and explore practical measures to support small businesses.
Following the meeting, trade bodies confirmed that they did not endorse any bandh and agreed to withdraw planned protests following the Chief Minister’s assurances.
Trade union representatives, including the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), raised concerns over confusion among small traders regarding GST notices, which often included loan amounts and personal transactions.
They urged the government to allow traders to resolve issues directly with the Commercial Tax Department without intermediaries and to provide adequate time to clear dues.
Suggestions included launching a dedicated helpline and holding awareness programmes to clarify GST rules. They also requested a one-time waiver of old tax arrears.
Chief Minister Siddaramaiah clarified that notices had been sent only to traders whose UPI transactions exceeded ₹40 lakh, and that the intent was to prompt GST registration.
He assured that no taxes would be collected from traders dealing in exempt goods like milk, vegetables, meat and fruits. However, those liable under GST law would be expected to comply.
He added that old tax arrears would not be pursued, provided such traders register under GST and begin making future tax payments.
The government reiterated its commitment to supporting small traders and ensuring lawful business practices. It promised assistance for timely tax payments and said the existing helpline would be improved for easier access.
The government also assured transparency in its operations and legal support for traders wherever possible.
