Won’t Go for Tax Recovery: Siddaramaiah on GST Notices to Vendors
In a recent development, the Chief Minister of Karnataka, Siddaramaiah, has announced that the state government will not proceed with tax recovery against vendors who have received Goods and Services Tax (GST) notices linked to their UPI transactions. This decision comes after vendors in Bengaluru received notices from the authorities, prompting some to put up “No UPI, only cash” posters as a form of protest.
According to sources, the vendors received notices from the Karnataka Commercial Taxes Department, which are linked to their UPI transactions. The notices were issued under the Karnataka Value Added Tax (KVT) Act and the Central Goods and Services Tax (CGST) Act.
In response to the situation, Siddaramaiah stated that the state government has asked the vendors to compulsorily register for GST. He also added that the traders have agreed to drop their protest, which was scheduled for February 25th. “Traders have agreed to drop the protest called on the 25th. We’ve asked for compulsory registration,” Siddaramaiah said.
The decision to not proceed with tax recovery is seen as a major relief for the vendors, who were worried about the potential consequences of non-compliance with the GST notices. The notices were issued to vendors who had not registered for GST despite being required to do so under the law.
The move is also seen as a significant step towards resolving the ongoing issue between the state government and the vendors. The vendors had been protesting against the notices, claiming that they were not aware of the requirement to register for GST and that the notices were issued without prior notice.
The issue highlights the challenges faced by small and medium-sized enterprises (SMEs) in complying with complex tax regulations. The vendors, who are primarily small and medium-sized businesses, were caught off guard by the notices and were worried about the potential consequences of non-compliance.
The decision by Siddaramaiah to not proceed with tax recovery is seen as a step towards resolving the issue and providing relief to the vendors. It also highlights the importance of effective communication and coordination between the state government and the vendors to ensure compliance with tax regulations.
In conclusion, the decision by Siddaramaiah to not proceed with tax recovery against vendors who have received GST notices linked to their UPI transactions is a significant development in the ongoing issue. The move is seen as a major relief for the vendors, who were worried about the potential consequences of non-compliance with the GST notices. It also highlights the importance of effective communication and coordination between the state government and the vendors to ensure compliance with tax regulations.
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