Karnataka Traders Reject UPI Over GST Notices, Return To Cash Transactions

Bengaluru: While India's UPI transaction is boasting to have surpassed the VISA digital transaction, making UPI the largest digital transaction in the world, the notice by the Commercial Tax officials to the small traders, street vendors and petty shop owners to pay up 18% GST is literally sending Karnataka back to age old `cash and carry' regime.

Not just those 14,000 traders and vendors, who are turning down the UPI transaction, but the syndrome is passing on to other sectors also. Worst is that many traders, who have current accounts are even turning down card payments also.

Rajesh Agarawal, who runs an electric fittings showroom in Chamarajpet says that it was hard to be accountable on the basis of PAN number run UPI. If we use multiple UPI accounts on the same PAN number, everything, including our personal transactions are being calculated as the business account.

Rajesh Agarawal may be having a single shop at Chamarajpet. However, the worst scenario comes from Silver Jubilee Park road, SP road, Raja Market, Chickpet and surrounding places, which is a one stop purchase for small traders across the state to purchase electronic, electrical, mechanical goods and other household articles. These4 traders would have transactions in lakhs per day and they have now stopped accepting UPI transactions.

Meanwhile, around 14,000 small traders and street vendors who received Commercial Tax department notice for paying up GST for transactions over Rs 40 lakh per year, are receiving support from traders's organisations also.

For the next three days, the traders are going on strike in a phased manner, urging the Commercial Tax Department to withdraw the notices to small traders and vendors. ``We are not against the tax per se. However, in this case, the department should have informed the vendors and traders and asked them to register themselves. Without any information, they have been asked to pay up tax for three years,'' they charged.

As part of the plan, the traders are blocking milk and milk based products on Wednesday and Thursday. On July 25, the traders will take out a massive rally at Freedom Park, protesting against the Commercial Tax Department.

POLITICAL BLAME GAME: Meanwhile, the ruling Congress has blamed the center for the fiasco, while the opposition BJP is pointing fingers at the ruling Congress, which has set a target to the Commercial Tax Department for collecting GST.

Chief Minister Siddaramaiah said that the Union government was troubling the small traders and vendors through GST and they should immediately interfere and do away with analysing the digital payment of small traders.

Deputy Chief Minister D K Shivakumar has said that the BJP was trying to shift the blame of GST notices to small traders on the state government.

“The BJP government at the Centre had fixed a turnover limit of Rs 40 lakh for the GST registration and had also instructed the state governments to follow it. The GST office has issued notices to about 14,000 traders including tender coconut, flower, vegetable vendors. The BJP must withdraw the GST notices issued to small traders. The CM will discuss with the officials and take necessary steps on the GST notices issued.” he added.

Former Chief Minister and MP Basavaraj Bommail squarely blamed the ruling Congress for all the confusion.

``The Center only monitors the GST Council. However, managing the GST collection and management are state subjects. The state government has given the GST collection target to the Commercial Tax Department and they have found a way accordingly. The Chief Minister should immediately interfere in the issue and direct the Commercial Tax Department to withdraw the notices,'' he added.