Archive · 23 Jul 2025
Karnataka Halts Tax Arrears Pursuit, Traders Scrap Strike
The Karnataka government has decided to not collect old taxes from traders on goods that are exempt from GST, like bread or vegetables.
This comes after traders received notices regarding their UPI transactions.
The government wants traders to register for GST and pay taxes moving forward.
The Chief Minister clarified that the government is not collecting taxes for exempted goods and traders dealing with them do not need to register.
Following the announcement, traders called off a planned strike.
Karnataka government will not pursue tax arrears notices on exempted goods.
Traders agreed to call off their planned strike on July 25 following the announcement.
Around 6,000 to 9,000 notices were issued to traders based on UPI transaction data.
Traders must register under GST and begin paying taxes moving forward.
Businesses dealing exclusively in exempted goods do not need to register.
- Who
- Karnataka Chief Minister Siddaramaiah and traders
- What
- Karnataka government will not pursue tax notices for exempted goods, and traders agreed to call off strike.
- When
- The announcement was made on Wednesday, and the strike was planned for July 25.
- Where
- Karnataka
- Why
- To address confusion over GST notices and to encourage tax compliance.
Government
Traders
Tax Notices
Government
Government will not pursue old tax arrears if traders register for GST.
Traders
Traders initially faced notices, leading to planned strikes.
- Government Action
- Will not pursue tax notices for arrears on exempted goods.
- Traders' Response
- Agreed to call off planned strike.
- Notices Issued
- Around 6,000 to 9,000 notices
- Condition for Tax Relief
- Traders must register under GST.
- Exempted Goods
- Bread, milk, essential food items, fruits, vegetables, flowers, tender coconut.
- GST Collection Rank
- Karnataka ranks second in India
