Karnataka Chief Minister Siddaramaiah held a high-level meeting with traders and representatives of various trade bodies, including the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), to address growing concerns over the recent wave of GST notices served to small businesses.
In a major relief to the trading community, the Chief Minister announced that the state government would not pursue recovery of pending GST arrears from the past three years. This assurance led to the withdrawal of planned protests by traders. However, Siddaramaiah made it clear that all traders with an annual turnover above ₹40 lakh must register under the Goods and Services Tax (GST) framework and comply with tax obligations going forward.
The Chief Minister also clarified that key essential items—such as milk, bread, vegetables, coconut, tender coconut, meat, flowers, and goods sold by street vendors dealing in agricultural produce—remain exempt from GST.
According to official figures, around 9,000 GST notices were issued to traders with turnovers exceeding ₹40 lakh, many of which were based on data sourced from UPI transactions. Traders have expressed concern that these notices often included personal expenses or loans, causing confusion and financial anxiety.
In response, the Chief Minister assured that GST department officials would conduct awareness workshops to help traders understand tax regulations. He emphasised the government’s intent to support small businesses while ensuring lawful business practices.
“The government is committed to helping small traders comply with tax laws without fear or confusion. Going forward, no past dues will be collected if traders register and start paying GST,” Siddaramaiah said during the meeting.
The discussion also saw participation from Revenue Minister Krishna Byre Gowda, Chief Secretary Shalini Rajneesh, and senior officials from the Finance and Commercial Taxes Departments.
As a mark of protest, many traders and shopkeepers on Wednesday wore black bands while running their businesses, while some establishments shut shop temporarily in opposition to GST notices based on UPI transaction data.
Trade unions such as the Karnataka Karmika Parishat had planned demonstrations at Freedom Park on Friday, and the Karnataka State Association of Bakeries, Condiments and Small Enterprises had called for a protest on Thursday. With the government’s assurance, many of these demonstrations are now likely to be called off.
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