Thousands of small businesses get commercial tax notices

BENGALURU: Thousands of small business owners in the state have received notices from the Commercial Tax Department. They had started their businesses with the hope of earning a living and taking care of their families, but are now worried about the development.

The state government has given a big shock to small business owners who have set up shop in cities, leaving their parents behind in their native villages. The Commercial Tax Department has issued notices to thousands of shops for the purpose of collecting taxes.

Many small shop owners are receiving notices from the Commercial Tax Department. The notices state that they have to pay taxes ranging from lakhs to crores, which is a huge burden for them.

Most of these shops operate digitally, with customers paying through online payment methods like Google Pay, Paytm and PhonePe. The Commercial Tax department has issued notices to these shop owners, asking them to pay taxes on their transactions over the past four years. Many shop owners are worried about how they will pay these taxes as they barely earn enough to make ends meet.

Rajendra Shetty, who owns a confectionery shop in Kengeri, has been asked to pay Rs 67 lakh in taxes. He has been running the shop for years and is struggling to make ends meet. Raghavendra Condiments in Sahakara Nagar has been asked to pay Rs 29.98 lakh in taxes.

These shop owners are now worried about their future and are struggling to pay the taxes demanded by the government. Another condiment shop owner said, “We are running small shops and selling tea and coffee. This is not enough to run a family. We are already in trouble. When I saw the tax notice, I was worried. Most of the customers are paying online. We have to pay for rent and need to manage the house and family”.

Rajendra Shetty, a condiment shop owner in Kengeri, said, “The GST departmetn issued a notice for Rs 60 lakh for four years. We struggle every day to earn a meagre sum. We also have to pay children’s school fees and other expenses. Even I have a loan to pay every month. The only way left is for the family to commit suicide by consuming poison”.

Harish, the owner of Ganesh Condiments, said, “I have received commercial tax notice showing that transactions has crossed Rs 40 lakh in SB accounts. I have to pay 18 pc GST. If I fails to do so, the bank accounts will be frozen. If I have pay that much, I will have sell my house and everything else. They are calculating the four years; no prior notice has been sent”.