Karnataka’s actions reflect financial desperation to fulfil funds for guarantees, says Vijayendra

Bengaluru: In response to tax notices issued by the Commercial Tax Department, the Karnataka BJP has launched a dedicated helpline (88842-45123) to assist small traders. The helpline will be operational from today (July 21).

At the launch of the “We stand with you” initiative held at the BJP State Headquarters on Saturday, Leader of the Opposition in the Legislative Council Chalavadi Narayanaswamy, said that street vendors and small traders had already begun receiving notices, triggering widespread anxiety. He expressed concern over the growing confusion and accused the State Government of failing to communicate effectively with affected communities.

The BJP has criticised the State Government’s GST enforcement drive, alleging that it has blurred the line between taxable and non-taxable incomes. They contend that traders have been left in the dark due to lack of proper information and guidance.

Under Central Government rules, businesses with an annual turnover exceeding Rs. 40 lakh are required to register under GST and pay taxes accordingly. However, in Karnataka, traders with turnover above Rs. 20 lakh have received notices, leading to further confusion.

He clarified that items such as flowers, fruits, vegetables, milk, meat, paneer and bangles do not attract GST.

BJP leaders asserted that small traders are not tax evaders but are struggling to comprehend a complex system. They accused the government of failing in its responsibility to educate and inform vulnerable sections and demanded protection for those impacted by what they described as unjustified action.

Funding guarantee schemes

BJP State President B.Y. Vijayendra alleged that the Congress Government, under Chief Minister Siddaramaiah, is facing a financial crunch in funding its guarantee schemes.

To bridge the gap, he claimed, the Commercial Tax Department has resorted to targeting street vendors with GST notices.

He further stated that no other State in the country has taken such measures against small traders and alleged that Karnataka’s actions reflect financial desperation rather than any legal mandate.