Karnataka waives old GST dues for small traders

India Jul 23, 2025

Karnataka has decided not to chase old GST dues from small traders, especially those who got notices for UPI transactions a couple of years back.
After protests, Chief Minister Siddaramaiah promised no action on these past tax issues, giving relief to many shop owners and small businesses.

BJP's state chief criticizes move

The government says the GST notices were just reminders for traders whose UPI sales crossed ₹40 lakh—to let them know they need to register under the GST Act.
If you deal in exempted goods or don't hit that limit, you're in the clear.
BJP's state chief B Y Vijayendra criticized the move and called for all trader notices to be withdrawn.
Meanwhile, tax officials clarified these weren't final demands—just a heads-up if your business is actually exempt.