Bengaluru: Facing intense backlash over GST notices served to small traders and daily vendors across Karnataka, Chief Minister Siddaramaiah on Wednesday convened a high-level meeting and assured that no tax would be forcibly collected from traders dealing in exempted commodities.
The move came after widespread protests broke out in districts like Bengaluru and Ramanagara, where milk sellers, tea shop owners, and small retailers staged symbolic shutdowns and refused to sell milk-based products to register their anger against what they termed as unjustified tax harassment.
“Even if there’s a loss, we won’t sell milk or tea. Customers are walking away. We are ready to give up everything — please roll back this order,” said one protester. Traders also carried placards reading, “We’ll surrender our livelihood, but not our dignity.”
The controversy stems from GST notices issued by the state’s Commercial Tax Department to petty traders, despite many of them dealing in exempted commodities. While the department falls under the Karnataka government, 50% of GST revenue is shared with the Centre, intensifying the political blame game.
During the meeting, Chief Minister Siddaramaiah assured the delegation that no GST would be collected from those selling exempted products and any such notices would be withdrawn. “Even if the notices were issued, they will not be enforced. Mandatory registration is required, but tax collection from exempt items will not happen,” the CM said, adding that the issue has been resolved after speaking with officials.
Meanwhile, BJP leaders accused the state government of resorting to aggressive tax recovery to fill its coffers. The Congress hit back, saying that the GST structure and enforcement guidelines are set by the GST Council chaired by the Union Finance Minister, with participation from state finance ministers. “So how can the state be solely blamed?” asked Minister Sharan Prakash Patil.
For now, small traders have welcomed the CM’s assurance and agreed to call off symbolic protests. However, they warned that any reversal on the relief promise could trigger a fresh round of agitation.
