GST notices issued to nearly 9,000 small traders have been withdrawn: CM

Bengaluru: Small-scale traders, including bakeries, condiment stores and other small businesses and vendors protesting against Goods and Services Tax (GST) notices linked to Unified Payments Interface (UPI) transactions exceeding Rs. 40 lakh annually have called off their agitation yesterday.

The strike was withdrawn as Chief Minister Siddaramaiah announced that GST notices to nearly 9,000 small traders have been withdrawn and no action will be taken on them.

Karnataka Karmika Parishat President Ravi Shetty Byndoor said, “The Commercial Taxes Department assured us that the GST notices will be withdrawn and recipients need not respond. We were also assured that arrears mentioned in the notices will not be pursued. Our key demands have been addressed.”

Thousands of traders had earlier staged symbolic protests by wearing black bands and ribbons, and had planned a Statewide bandh on Friday. As part of the protest, bakery and condiment shop owners refrained from selling milk and allied products such as curd, buttermilk and tea — their main sources of income.

Byndoor said they had boycotted a meeting called by Siddaramaiah but later withdrew the protest after receiving assurances from the Commercial Taxes Department.

Confusion among small traders

At the CM’s meeting, the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) highlighted confusion among small traders over GST notices, which often included loan amounts and personal transactions.

They urged the Government to let traders resolve issues directly with the Commercial Tax Department, allow adequate time to settle dues, launch a dedicated helpline and conduct awareness programmes. They also sought a one-time waiver of old tax arrears.

Clarifying the Government’s stance, Siddaramaiah said the notices were issued only to traders whose UPI transactions exceeded Rs. 40 lakh, primarily to prompt GST registration.

He assured that traders dealing in exempt goods like milk, vegetables, meat, and fruits would not be taxed, but those liable under the law must comply. He further stated that old arrears would be waived, provided traders register under GST and begin paying taxes going forward.

FKCCI President M.G. Balakrishna lauded the CM, stating, “The Government’s assurance that goods traders will not be taxed and arrears will be waived upon registration has restored traders’ confidence.”

He added, “The CM has emphasised that the Government stands with the poor and working class. Empowering small traders boosts purchasing power and drives grassroots economic growth. FKCCI will intensify support by organising handholding programmes and digital literacy workshops to facilitate GST registration and compliance.”