Karnataka CM Orders Mandatory GST Registration
Karnataka Chief Minister Siddaramaiah has directed that all eligible traders crossing the GST turnover threshold must register under the Goods and Services Tax system. The instruction follows widespread confusion after tax notices were issued based on UPI payment records.
CM Responds to Traders’ Concerns
Several traders had received GST registration notices after authorities used UPI transaction data to identify businesses that exceeded the mandatory registration limit. The turnover threshold is ₹40 lakh annually for goods and ₹20 lakh for services. Many small vendors feared the notices were based on personal UPI transactions and not just business income.
In response, CM Siddaramaiah clarified that businesses selling only exempt items like milk, fruits, vegetables, flowers, and meat are not required to register. He added that traders who voluntarily register and begin paying GST henceforth will be exempted from past tax dues.
Relief Offer and Outreach
To ease panic and boost compliance, the Chief Minister announced that old tax arrears would be waived for those who register now. He also directed officials to launch an awareness drive and provide helplines to clarify GST rules, especially for small and marginal traders.
Traders Cancel Planned Strike
Following the CM’s assurances, trader associations that had planned a statewide shutdown on July 25 withdrew their protest. While some traders still seek further clarification on UPI data usage and tax liability, most welcomed the relief announcement.
Karnataka’s GST Focus
Karnataka ranks among the top states in GST collections. With digital payments playing a key role in revenue tracking, the government aims to ensure better tax compliance while protecting honest, small-scale vendors from undue pressure.
