Archive · 23 Jul 2025
Karnataka Halts Tax Arrears Pursuit, Traders Call Off Strike
The government in Karnataka has decided not to make small businesses pay old taxes on certain goods, like bread and milk, from the last three years.
This is because some businesses were confused about these tax notices related to online payments.
The Chief Minister met with traders, who were planning to protest, and they agreed to stop the strike.
The government wants businesses to register with the Commercial Tax Department, but those selling only tax-free goods don't have to.
A special phone line will be set up to help businesses with any questions.
Karnataka government will not pursue tax notices for tax arrears on exempted goods and services from the past three years.
Traders, who had planned a strike, agreed to call it off after the announcement.
The notices were related to UPI transactions, with many traders confused about them.
The government stated that traders must register with the Commercial Tax Department.
A helpline will be established to assist traders.
- Who
- Karnataka's Chief Minister Siddaramaiah and traders in the state.
- What
- Karnataka government will not pursue tax notices issued to traders for tax arrears on exempted goods and services from the past three years.
- When
- Announced on Wednesday by CM Siddaramaiah.
- Where
- Bengaluru, Karnataka.
- Why
- To address concerns from traders and avoid a planned strike.
Government
Traders
Taxation and UPI Transactions
Government
The government issued tax notices for UPI transactions exceeding Rs 40 lakh to prompt GST registration.
Traders
Traders called for a boycott of UPI payments due to these notices.
- Government
- Karnataka
- Chief Minister
- Siddaramaiah
- Tax Notices
- Related to arrears on exempted goods and services
- Tax Period
- Past three years
- Traders' Response
- Called off strike
- Requirement for traders
- Registration with Commercial Tax Department (if not dealing exclusively in exempted goods)