Karnataka Halts Old GST Cases After Trader Backlash

The Karnataka government has decided not to pursue old tax cases against small businesses to avoid problems.

This decision was made after traders complained about receiving tax notices based on their UPI transactions, which also included personal money.

The government wants all businesses to register and pay taxes going forward, but they will not collect taxes from businesses that sell goods that are not taxed.

If traders register with the tax department, they don't have to worry about old tax arrears.

Notices were sent because some businesses had a lot of money moving through UPI, which may mean they should be registered for GST.