Former CM Bommai slams Karnataka govt over GST burden on small traders, urges for relief

BJP MP Basavaraj Bommai criticized Karnataka's tax recovery measures, labeling them a 'GST shock' for small businesses.

Former Karnataka Chief Minister and BJP MP Basavaraj Bommai has strongly criticized the state’s Commercial Tax Department for what he called an "unjust" move to levy years' worth of Goods and Services Tax (GST) dues — along with penalties and interest — on small and micro businesses. He called on Chief Minister Siddaramaiah to step in and offer immediate relief to the affected traders.

Karnataka CM Basavaraj Bommai assured legal action over Congress' allegation that BJP is "plotting to eliminate" Kharge and his family. (PTI)

Taking to social media platform X, Bommai described the tax crackdown as a “GST shock” that has hit small business owners hard and labeled the government's action as “condemnable”.

“The action of the Karnataka State Government's Commercial Taxes Department in imposing a GST shock on small and micro-business owners is highly condemnable,” he wrote.

“…the State Commercial Taxes Department, in haste, has imposed taxes for several years along with interest and other charges, placing a heavy burden on small roadside business owners, pushing them to a situation where they may have to shut down their businesses, which is unacceptable to anyone,” he added.

Calling for immediate intervention, Bommai urged the government to hold talks with representatives of the affected traders and extend benefits under the tax settlement scheme, similar to what is provided to other taxpayers.

“By inviting representatives of the concerned small business owners for discussions and providing them with all kinds of concessions, assistance should be extended to them under the tax settlement scheme, just as it is done for other taxpayers,” Bommai explained.

He further argued that Karnataka must safeguard small businesses.

According to Bommai, the state's aggressive tax recovery drive is a result of financial stress and underperformance in tax revenue during the first quarter of the fiscal year. He suggested that the decision to impose heavy tax dues was made under pressure, citing a reported shortfall in revenue and a depleted treasury.

“Amid discussions at the highest levels of the Commercial Taxes Department, it is said that this action was taken due to financial difficulties in the state, an empty treasury, and a shortfall in tax collection in the first quarter of this year, prompting such stringent measures out of panic. In this context, Chief Minister Siddaramaiah must provide a solution to this issue,” he concluded.