In relief for small traders, CM Siddaramaiah says pending commercial tax dues won’t be collected

BENGALURU: Small traders and businessmen in the state can look forward to major relief from Commercial Tax department which has served notices over tax dues. Chief Minister Siddaramaiah on Wednesday said there will be no collection of pending dues.

This decision come after bakeries and condiment stores went on protest by not selling milk for three days from Tuesday. They had also planned for a protest at Freedom Park on July 25.

#WATCH | Bengaluru | Karnataka CM Siddaramaiah says, “I called a meeting with small traders and others to discuss the issue of notices being issued to small traders, as notices were being issued to those with a turnover of more than Rs 40 lakh. Around 9000 notices were issued.… pic.twitter.com/2m8idTXzkV

— ANI (@ANI) July 23, 2025

Chief Minister Siddaramaiah said on Wednesday, “I called a meeting with small traders and others to discuss the issue of notices being issued to small traders, as notices were being issued to those with a turnover of more than Rs 40 lakh annually. Around 9,000 notices were issued. The central government has decided to impose 1 per cent tax on these individuals. There was confusion among small traders about this. Traders dealing in exempt goods shall not be registered compulsorily and old tax arrears will not be pursued.The delegation has agreed to withdraw the agitation called on July 25”.

The state government has decided to not continue tax collection from them, and GST registration will not be necessary for those selling exempt goods. Although some goods sold in small shops fall under GST regime, they are not required to pay GST as they are exempt. No collection of tax or penal action will be taken based on the notices issued, the CM said.