Karnataka Chief Minister D K Shivakumar on Wednesday instructed commercial tax officers not to harass honest taxpayers while ensuring strict action against evaders. Speaking at a review meeting of the Commercial Taxes Department, he emphasized the need for a balanced approach that does not burden compliant businesses.
GST collection growth outpaces national average
Up to May this fiscal, Karnataka has collected GST revenues of Rs 32,069 crore, registering a 9% growth rate, which is higher than the national average of 1%. The CM appreciated the department's efforts but stressed that revenue targets should be met without causing inconvenience to law-abiding taxpayers.
“Honest taxpayers are the backbone of our economy. They should not be troubled unnecessarily. At the same time, tax evaders must be dealt with firmly,” Shivakumar said. He also directed officials to use data analytics to identify evasion patterns rather than conducting random inspections.
Focus on digital compliance and transparency
The CM called for greater use of technology to simplify tax filing and reduce physical interactions. He suggested that the department adopt a more taxpayer-friendly approach, including timely refunds and clear communication of rules. “We must build trust between the government and taxpayers,” he added.
Officials briefed Shivakumar on the progress of the e-invoicing system and the implementation of the GST portal improvements. The department aims to increase voluntary compliance through awareness campaigns and simplified procedures.
Strict action against evasion, but no harassment
Shivakumar warned that while the government would not tolerate tax evasion, officers should not adopt coercive methods. He asked them to focus on high-risk cases and avoid blanket notices. “Let us not create an atmosphere of fear. Our goal is to increase revenue, not to punish honest people,” he said.
The meeting also reviewed pending refunds and appeals. The CM instructed officials to clear pending refunds within a stipulated time frame to ease cash flow for businesses.
