Bengaluru (Karnataka) [India], July 23 : The BJP will provide its full backing to the ongoing agitation of small traders in the state, said BJP state president and MLA BY. Vijayendra at the party's state headquarters in Jagannath Bhavan.
Speaking to the media, he stated that the state government's Commercial Taxes Department has begun issuing notices to street vendors, as well as micro, small, and very small businesses--sparking widespread concern. "All these traders now live in fear and anxiety."
Vijayendra accused the Chief Minister and his cabinet of plotting to blame the Union Government for Karnataka's own revenue problems. He recalled that Chief Minister Siddaramaiah had publicly urged officials to overtake Maharashtra and top the country in GST collections, even setting explicit revenue targets.
He continued, "Now the truth is out."
"With the Congress government's treasury running dry, the Chief Minister has unleashed the Commercial Taxes Department to issue these notices in a bid to raise money. The notices served on street vendors and small businesses are completely illegal. The government must immediately stop issuing them and withdraw those already sent," he said.
He added that basic goods, such as milk, are outside the GST ambit; yet, even such vendors have been served. While GST has only three rate slabs, officials are issuing notices that demand 18 per cent tax from everyone indiscriminately. "Because the exchequer is empty, they are sending notices overnight without any review, leaving every trader terrified. The government must roll back this decision at once."
Small vendors and traders across Karnataka have raised serious concerns after receiving GST notices from the commercial tax department for UPI-based transactions exceeding Rs 40 lakh annually. They have requested that the government revoke notices, demanding a relaxation in the enforcement of these rules for small-scale vendors.
Speaking on behalf of the vendors, a member of the Karnataka Pradesh Street Vendors Association, Abhilash Shetty, said, "Small businesses run with a margin of 5 to 10 percent... The tax (GST) along with other things like penalty, comes to 50% and it is not possible for the vendors to pay such a huge tax with this. We request the government to interfere and give relaxation to the small vendors in this matter..."
The association's legal representative, Advocate Shakuntala, echoed the sentiment, criticising the government for failing to educate small vendors about their tax obligations when registering their businesses.
She said, "If taxes are being imposed, why were they not educated first?... When they took the registration, they should have been made aware about the taxes on selling of goods, revenue..."
In Haveri, a vegetable trader named Shankar Gowda Hadimani shared his concern after receiving a 29 lakh tax notice from the Bengaluru Tax Office.
He stated, "... Since there are no GST rules on fruits and vegetables, I did not register for GST number. But I got a notice to pay Rs 29 lakh in taxes for a business of over Rs 40 lakh... The officials have told me that if it is proven that I have done so much business in vegetables, the notice will be withdrawn."