GST row: K'taka BJP launches helpline for protecting small traders' interests

Bengaluru, July 19 (IANS) The Karnataka BJP, on Saturday, announced the launch of a helpline to safeguard the interests of small traders in the state in the backdrop of row over GST.

Addressing a press conference at the State BJP Office, Jagannath Bhavan, in Bengaluru, the Leader of the Opposition in Legislative Council, Chalavadi Narayanaswamy, has said that the BJP will launch a helpline (8884245123) from July 21 to safeguard the interests of small traders in the state.

He added that street vendors and small traders have already been served notices by the state government, creating confusion and fear among poor traders in the state.

He criticised the Congress-led state government for failing to provide solutions or clarify what constitutes taxable income.

Narayanaswamy said that as per Central government's data available with the state, traders whose annual turnover exceeds Rs 40 lakh must register and pay GST.

"Service providers with turnover above Rs 20 lakh are also liable to pay GST. However, the notices sent by the state are not valid in many cases," he alleged.

"Traders are not tax evaders or criminals. They do not understand the tax rules, and the state government has failed to educate them," he said.

He urged the state government to protect the interests of the poor traders rather than intimidate them.

He said that according to Central government rules, GST is applicable only if the annual turnover exceeds Rs 1.5 crore at one per cent rate.

"For street vendors to fall under GST, they must have a permanent shop and address. There is an exemption for turnover up to Rs 40 lakh, and issuing notices to traders with turnover above Rs 20 lakh has created confusion," Narayanaswamy added.

He also said that apps like Paytm, PhonePe, and Google Pay used for UPI transactions are being tracked, and funds received by traders directly into bank accounts are being used to send notices.

"But it's not being verified whether the turnover exceeding limits is due to actual business or loans and other types of transactions," he clarified.

G.S. Prashanth, State Convener of BJP's Economic Cell, noted that items like flowers, fruits, vegetables, milk, meat, paneer, bangles, and many other products are exempted from GST.

"Even if someone does Rs 10 crore turnover in these exempted items, GST registration is not mandatory. Yet, notices have been sent to such traders by the state GST department," he alleged.

He added that according to GST laws, third-party data cannot be used to issue tax notices without verification.

"Information from Paytm, PhonePe, or Google Pay must be verified first. Officials must ascertain whether the trader's goods fall under GST before issuing notices. Unfortunately, none of this due process has been followed," Prashanth claimed.

He also said: "The state GST department has done nothing to spread awareness among street vendors about the taxes. Nearly 90 per cent of traders fall under the jurisdiction of the state GST, and only 10 per cent under Central GST. Yet, without any outreach or information sharing, the state has spread fear among small traders."

Therefore, the 14,000 notices issued to traders by the state government are illegal and unconstitutional, he asserted.

Those present at the press conference were Rajya Sabha MP Lehar Singh, Chikkaballapur district president S.V. Ramachandragowda (Seakal), BJP Medical Cell state convenor Dr. K. Narayan, BJP Economic Cell state convenor G.S. Prashanth, and former BJP state spokesperson G.V. Krishna.

When asked about the state government's notices to small traders demanding tax payments, State BJP Preident B.Y. Vijayendra said, "We discussed this yesterday with party leaders. The Siddaramaiah-led Congress government, which is struggling to mobilise funds for its guarantee schemes, is now intimidating street vendors by sending them tax notices."

"While GST goes to the Centre, it is a fact that no other state in the country has seen such developments. But in Karnataka, the state government is unable to manage its finances for guarantees and development. So under the Chief Minister's instructions, they are threatening traders and street vendors," he added.

--IANS

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