BENGALURU: Trade bodies and street vendor associations on Wednesday decided to withdraw their planned protests against GST notices issued to them after Chief Minister Siddaramaiah assured them of assistance.
In a significant relief, the chief minister announced that past GST dues would be waived off for traders who had not registered earlier but agree to register now.
He stressed on organising workshops in collaboration with trade bodies to clear misconceptions. He reiterated that essential goods, like milk, vegetables, fruits, and meat, are exempt from GST.
While notices may have been issued to traders dealing in these items, no taxes will be collected from them if they fall under the exemption list. However, those who are liable under the GST law must comply accordingly, he told them.
Reassuring the trading community, Siddaramaiah stated that the government’s intention is not to harass, but to support legitimate business activity.
‘Committed to transparent governance’
“We are committed to transparent governance and safeguarding the interests of small businesses,” the CM said.
Siddaramaiah chaired a high-level meeting, followed by a media briefing outlining key measures and clarifications from the state government.
The associations, along with FKCCI, presented their grievances to the chief minister. Many highlighted their confusion regarding GST notices, citing that loan amounts and personal transactions had mistakenly been included in taxable turnover.
Siddaramaiah clarified that while issuing GST notices is not inherently wrong, affected traders should be provided an opportunity to pay pending taxes without harassment. He instructed officials to ensure that traders can deal directly with the tax department, eliminating the need for intermediaries. He directed the Commercial Taxes Department to set up a dedicated helpline to assist small traders and initiate awareness campaigns to educate them on GST compliance.
Officials clarified that approximately 18,000 notices were issued over the last 2-3 years to around 9,000 traders who recorded UPI transactions exceeding Rs 40 lakh.
The traders expressed satisfaction with the government’s responsiveness and pledged cooperation moving forward. Siddaramaiah pointed out that GST rates are determined by the national GST Council, chaired by the Union finance minister. Of the total GST revenue, 50% is allocated to the state.