‘I’m Watching Everything’: CM D.K. Shivakumar Warns Tax Officials, Says Lapses Won’t Go Unnoticed from Chickpet to Border Districts
Bengaluru, June 26: Delivering a strong message to officials of the Commercial Taxes Department, Karnataka Chief Minister D.K. Shivakumar on Friday warned that negligence in tax administration would not escape his notice, asserting that he has an extensive network of contacts across the state—from Bengaluru’s Chickpet and Gandhinagar business hubs to the border districts.
Addressing a review meeting on the progress of revenue collection departments at Vidhana Soudha, the Chief Minister said every lapse in the functioning of officials reaches him through multiple channels and cautioned officers against any compromise in preventing tax evasion.
“I am watching everything. I receive continuous information from every region of the state. From Chickpet to Gandhinagar, and from the border districts to every part of Karnataka, I have my own network of contacts. Any lapse or negligence in the functioning of officials comes to my notice. The information reaching me must match your performance reports,” Shivakumar told the officers.
The meeting was attended by Chief Secretary Shalini Rajneesh, Chief Minister’s Economic Adviser L.K. Atheeq, Additional Chief Secretary Tushar Girinath, Additional Chief Secretary (Finance) Ritesh Kumar Singh and senior officials of the Commercial Taxes Department.
The Chief Minister described Commercial Taxes officials as the “strength of the government” and expressed confidence that the department would exceed the tax collection target set for the current financial year.
He directed officials to strictly implement recommendations made by the Finance Department and economic advisers to improve departmental efficiency, stating that the responsibility for execution now rested entirely with the officers.
Issuing a stern directive against tax leakage, Shivakumar said no goods vehicle should be allowed to cross a check-post or the state’s borders without valid documentation.
“There should be absolutely no scope for tax leakage. There can be no compromise or negligence on this issue,” he said.
Calling for stronger interstate coordination, the Chief Minister instructed the department to work closely with commercial tax authorities and enforcement agencies in neighbouring states through information-sharing and joint operations to curb tax evasion.
Highlighting the department’s technological capabilities, he said Karnataka now has data on nearly 1.2 million taxpayers and urged officials to utilise technology and data analytics to conduct comprehensive 360-degree assessments.
“If you use this opportunity effectively, you will not only achieve the target but also surpass it,” he said.
At the same time, Shivakumar made it clear that honest taxpayers should not face harassment.
“Our objective is not to trouble genuine taxpayers. Every taxpayer must be treated with dignity and respect. Work intelligently with your staff and build trust with taxpayers, but there should be zero tolerance for tax fraud,” he said.
Warning of strict accountability, the Chief Minister said he would personally review the implementation of every direction issued during Friday’s meeting.
“When we meet next, every instruction I have given today must have been implemented. I will personally assess your performance with real examples,” he said.
Reiterating his warning, Shivakumar said not even a single goods vehicle should cross a check-post or the state’s borders without proper records, documentation and complete accountability.
He also asked Joint Commissioners to achieve the revenue targets allotted to their respective divisions and directed officials to ensure timely filing of GST returns while taking strict action against non-filers.
The Chief Minister said officers have the potential to double the department’s current tax collections, but clarified that such growth should come strictly within the framework of law.
“I am not asking you to violate the law or harass people. Honest taxpayers must not suffer. But if there is dishonesty within the department, I will take uncompromising action,” he warned.
Shivakumar also directed officials at every level to resolve genuine taxpayer grievances quickly and said he remains open to learning more about the functioning of the Finance and Commercial Taxes Departments despite nearly four decades in public life.
Reviewing the department’s performance, officials informed the meeting that Karnataka recorded around 9 per cent growth in GST collections, outperforming the national average as well as states such as Gujarat, Tamil Nadu and Haryana.
The meeting was also informed that the department has strengthened its GST Analytical Portal developed in collaboration with IIT Hyderabad to detect tax fraud through 360-degree monitoring of GST collections, leakages and fraudulent transactions.
Officials said fake invoices and fraudulent Input Tax Credit (ITC) claims remain major challenges. They informed the Chief Minister that action against bogus firms had resulted in the recovery of ₹166 crore and that arrests in such cases have been increased. Disciplinary action has also been initiated against departmental staff wherever lapses were detected.
The Chief Minister expressed concern over the decline in performance in the Mysuru Division, saying excuses for poor performance would not be accepted and that results alone matter.
He also directed senior officers to expedite the disposal of pending tax appeals and simplify procedures further to make the taxation system more taxpayer-friendly.
According to the presentation made during the meeting, Karnataka recorded 9 per cent GST growth up to May 2026, compared with Telangana’s 10 per cent, Maharashtra’s 5 per cent, Gujarat’s 5 per cent, Tamil Nadu’s 7 per cent and Uttar Pradesh’s 8 per cent. Shivakumar asked officials to identify ways to make Karnataka the top-performing state in GST growth.
The Chief Minister’s remarks came during the Commercial Taxes Department’s progress review meeting held at Vidhana Soudha on Friday.
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