Karnataka's 'Know GST' campaign after digital payments scare
Karnataka's tax department just kicked off the "Know GST" campaign to help small traders who got hit with surprise GST notices after using UPI payments.
About 14,000 unregistered traders were flagged for crossing GST limits based on their digital transactions.
Many traders stopped accepting digital payments
Some traders were asked to pay up to ₹40 lakh in back taxes, which led many to stop accepting digital payments—slowing down the state's push for cashless business.
The government is now holding workshops (the first was in Bengaluru) to clear up confusion and reassure traders.
Chief Minister Siddaramaiah has promised direct talks with traders and plans to take their concerns to the national GST Council.
Political leaders are also calling for a balance between supporting small businesses and enforcing tax rules, so Karnataka's digital economy doesn't take a hit.