GST burden on small traders: Bommai urges CM Siddaramaiah to intervene

Bommai said the State Commercial Taxes Department, in haste, has imposed taxes for several years along with interest and other charges, placing a heavy burden on small roadside business owners

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Former Karnataka Chief Minister and Bharatiya Janata Party (BJP) MP Basavaraj Bommai criticised the state's Commercial Tax Department over what he described as an "unfair imposition" of Goods and Services Tax (GST) dues on small and micro traders, urging Chief Minister Siddaramaiah to step in and provide immediate relief.

In a post on social media platform X, Bommai said the move has come as a "GST shock" to small business owners and is "highly condemnable."

"The action of the Karnataka State Government's Commercial Taxes Department in imposing a GST shock on small and micro-business owners is highly condemnable. Under the GST law, there are certain concessions for conducting business transactions. There is a system where tax must be paid after availing those concessions," his post read.

He further said that in this matter, the State Commercial Taxes Department, in haste, has imposed taxes for several years along with interest and other charges, placing a heavy burden on small roadside business owners, pushing them to a situation where they may have to shut down their businesses, which is unacceptable to anyone.

"By inviting representatives of the concerned small business owners for discussions and providing them with all kinds of concessions, assistance should be extended to them under the tax settlement scheme, just as it is done for other taxpayers. I demand that the measures taken in other states regarding this issue be implemented here as well, keeping in mind the interests of small business owners and consumers," he further said.

"I urge Chief Minister Siddaramaiah to intervene in this matter immediately and provide relief to small business owners. Amid discussions at the highest levels of the Commercial Taxes Department, it is said that this action was taken due to financial difficulties in the state, an empty treasury, and a shortfall in tax collection in the first quarter of this year, prompting such stringent measures out of panic. In this context, Chief Minister Siddaramaiah must provide a solution to this issue," he added.

He urged that representatives of the affected small traders be called for discussions and that they be granted all possible concessions. Just as assistance is extended to taxpayers under the Karasamadhana Scheme, similar support should be extended to these small traders.

Bommai further stated that other states have already taken appropriate measures in this regard, and such measures must be adopted in Karnataka as well, keeping in mind the interests of small traders and consumers.

He noted that due to financial constraints and a shortfall in tax collections during the first quarter of this fiscal year, the state treasury is under pressure. As a result, the Commercial Tax Department has taken this harsh step in haste, following instructions from the top. Given this background, he insisted that Chief Minister Siddaramaiah must step in and offer a suitable remedy.