Karnataka HC Rules GST Petition Infructuous After Registration Revocation

Karnataka High Court Dismisses GST Petition as ‘Infructuous’ After Tax Dept Revokes Cancellation Order

“The counsel for the petitioner submits that the matter was previously listed on 15.07.2026 for hearing and since there was an application for revoking the registration was pending, on the same day, the office of the Respondent No.1 had telephoned the petitioner and conducted an inspection on the same day i.e. 15.07.2026 at 4.00 P.M. and the Respondent No.1 at 6.15 PM has issued an Order for revocation of cancellation of registration. Copy of the Order for revocation of cancellation of Registration is enclosed for the kind consideration of this Hon’ble Court. Hence in view of the Registration of the Petitioner being reinstated, the present writ petition has become infructuous and thereby request this Hon’ble Court to dispose the petition as infructuous in light of the subsequent development pursuant to the previous date of hearing.”

GC-JK Steel Industries Vs Assistant Commissioner of Commercial Tax Download

Income Tax Raids on Private Universities in Karnataka and Andhra Pradesh

Income-Tax Officials Conduct Raids on Private University in Bengaluru

Bengaluru: Income-tax officials carried out extensive raids on Wednesday targeting premises associated with a private university in Bengaluru and locations outside Karnataka.

This operation was prompted by allegations of tax evasion and a significant increase in assets that appeared disproportionate to the university’s declared income.

The raids commenced at 6 am and were executed simultaneously across multiple campuses in southern Bengaluru and in Andhra Pradesh, according to sources. Officials are investigating claims that the university group’s assets greatly exceed its reported income, and are currently reviewing financial records. The inquiry includes examining expenditures attributed to college development, furniture purchases, and the collection of student fees.

Additionally, the investigation is focusing on student admissions, with officials verifying information regarding the number of students admitted through both management and government quotas. Furthermore, the count of college employees is also under scrutiny as part of the broader inquiry into the institution’s financial practices, the sources added.

Karnataka Congress MLA KC Veerendra Arrested in Major Illegal Betting Scandal Involving Rs 6 Crore in Gold and Cash

Karnataka Congress MLA KC Veerendra Arrested for Alleged Involvement in Betting Scandal

The Enforcement Directorate (ED) arrested Karnataka Congress MLA KC Veerendra in Gangtok on Saturday, implicating him in illegal online and offline betting activities. Veerendra, along with his associates, allegedly traveled to Gangtok for the purpose of leasing land for a casino.

This arrest follows a significant raid carried out by the anti-money laundering agency on 30 premises linked to Veerendra, resulting in the seizure of approximately Rs 12 crore in cash. This amount included nearly one crore in foreign currency, gold jewelry valued at around Rs 6 crore, and about 10 kgs of silver articles. Additionally, four vehicles were confiscated during the operation.

As part of the ongoing investigation, the ED has also frozen 17 bank accounts and two bank lockers associated with Veerendra. Crucially, property-related documents were seized from the locations belonging to his brother, KC Nagaraj, and his son, Pruthvi N Raj. Reports indicate that Veerendra’s associates, including his brother KC Thippeswamy and Pruthvi N Raj, were allegedly managing online gaming operations from Dubai. Incriminating materials discovered during the searches suggested “complex layering of cash and other funds.”

Veerendra has been brought before a Gangtok judicial magistrate to further identify the alleged proceeds of crime. Concurrently, the ED has conducted searches at five casinos in Goa—Puppy’s Casino Gold, Ocean Rivers Casino, Puppy’s Casino Pride, Ocean 7 Casino, and Big Daddy Casino—linked to Veerendra as part of the money laundering investigation.

Sources revealed that Veerendra is reportedly operating multiple online betting sites, including King567, Raja567, Puppy’s003, and Rathna Gaming. Furthermore, his brother, KC Thippeswamy, is said to manage three business entities from Dubai: Diamond Softech, TRS Technologies, and Prime9Technologies, which are connected to call centers and the gaming business of K C Veerendra.

The arrest of a sitting politician raises questions about the potential impact on future criminal activities. Will such actions deter similar conduct among public figures?

Sub-Registrars in Karnataka Fail to Report High-Value Property Transactions

Bengaluru: Despite repeated notices and warnings from the income tax department, at least 32 sub-registrars in Karnataka have not reported high-value transactions of immovable properties. This includes sub-registrars from Byatarayanapura, Banashankari, Gandhinagar, Yelahanka, Basavanagudi, and the BDA within the Bengaluru jurisdiction.

The income tax department has communicated these concerns to the Chief Secretary of Karnataka. A copy of the correspondence accessed by DH states, “This letter is to bring to your kind notice the continued non-compliance of the statutory requirement of reporting high-value transactions in immovable properties by some sub-registrars, which has wider ramifications in terms of collection of tax due to the Central government and for extending timely taxpayer services.

The income tax department emphasizes that sub-registrars are mandated to furnish a statement of financial transactions (SFT) on immovable properties exceeding Rs 30 lakh to the department. This requirement aims to promote non-intrusive tax administration and voluntary compliance by taxpayers, which is essential for widening and deepening the tax base. The letter indicates that, to date, 33 sub-registrars have not filed the SFT for the reporting period 2024-25, with the prescribed deadline being May 31, 2025.

The letter further notes, “So far, the number of reports filed for the period 2024-25 is less than the number filed for the reporting period 2023-24.” The information submitted by sub-registrars is processed by the department and incorporated into the Annual Information Statement (AIS) of the taxpayer concerned. This information is verified by the taxpayer, and in cases of discrepancies, there is a provision to raise a dispute. Furthermore, the information in the AIS encourages taxpayers to fully disclose transactions in their income tax returns.

The income tax department underscored the critical nature of information received through SFTs in identifying cases of undervaluation of properties and for ensuring they fall within the tax net. Failure to furnish the statement within the prescribed time puts taxpayers into great inconvenience and results in revenue loss for the government,” the department stated.

The continued non-compliance raises significant concerns, with the letter questioning what is preventing these sub-registrars from filing their statements, especially when information is readily available on the Kaveri portal.

According to available information, the income tax directorate has been consistently reaching out to Karnataka’s Department of Stamps and Registration regarding this issue, discussing methods to streamline the timely and error-free filing of SFTs by implementing necessary changes in the Kaveri 2.0 portal.

Mullai Muhilan, MP, Inspector General of Registration and Commissioner of Stamps, stated, “We are validating the online portal for this matter and are in discussions with officials regarding some technical issues related to income tax department parameters.

Karnataka MP: New Income Tax Act Amendment to Affect Chartered Accountants’ Services

G. Kumar Naik Critiques New Income Tax Act Amendment

Member of Parliament G. Kumar Naik has voiced concerns regarding the recent amendment to the Income Tax Act proposed by the Central Government, asserting that it could have detrimental effects on the services provided by Chartered Accountants.

During a discussion organized by the District Commerce and Industries Association alongside the Chartered Accountants Association in Yadgir on July 26, Naik expressed his disappointment with the government’s approach. The Central Government has proposed amendments to the Income Tax Act. But, it could have conducted a wide discussion with experts before taking a decision,” he stated. He emphasized the importance of collaboration and invited Chartered Accountants to prepare a detailed report outlining how the proposed changes would affect their work, promising to raise the issue in the Lok Sabha.

The discussion also highlighted the opinions of various Chartered Accountants present at the event. Many expressed that advancements in digital device technology are likely to impact their personal and professional lives significantly. Consequently, they urged the Central Government to consider these implications while amending the Act.

Notable attendees included Dinesh Kumar Jain, Chairman of YDCCI, Vivek Totloorkar, Chairman of the Tax Committee, and Channamallikarjun Akki, all of whom contributed to the discussions surrounding the potential impacts of the amendment on the accounting profession.

Siddaramaiah Cancels GST Dues for Small Traders; July 24 Protest Abandoned

Waiver of Old GST Dues for Small Traders in Karnataka

Bengaluru: Amid the confusion surrounding the receipt of GST notices by small-scale traders from the Commercial Taxes Department, Chief Minister Siddaramaiah announced on Wednesday that the state would waive old tax dues for those affected.

This decision brings relief to approximately 9,000 traders statewide who received nearly 18,000 GST notices in the past two to three years. The waiver was announced following a meeting chaired by Siddaramaiah at his official residence, which included officials from the Commercial Tax Department and trade body leaders. In light of the CM’s announcement, trade groups have decided to cancel a planned protest for Thursday.

Abhilash Shetty, from the Karnataka State Association of Bakeries, Condiments, and Small Enterprises, expressed satisfaction, stating, “Our demand has been met. Many of us sell a variety of goods. While a few are exempt from GST, many others face taxes ranging from 3% to 40%. This was not considered when issuing the notices. However, the CM has assured us that these notices will not be pursued further.”

A statement released by the Chief Minister’s Office noted that trade representatives raised concerns about GST notices that included not just business transactions but also personal money transfers and loan disbursals made through UPI, leading to significant confusion. Although some GST notices were deemed legally valid, traders requested support from the government to facilitate direct tax payments without intermediaries. They also called for a special helpline and informational programs to clarify GST rules.

At a press conference following the meeting, Siddaramaiah clarified that GST notices were sent only to traders whose UPI transaction totals exceeded Rs 40 lakh over the last two to three years, aiming to encourage their registration for GST. He emphasized that essential items such as milk, vegetables, meat, fruits, bread, and tender coconuts are exempt from GST. “Even though notices were sent to traders dealing with these exempt items, no tax will be collected from them. The government will not seek old tax dues from the last two to three years,” he affirmed.

The Chief Minister highlighted Karnataka’s lead in digital payments, with 40% of all transactions occurring through UPI, surpassing the national average of 30%. He remarked that this achievement marked a considerable success for the formal economy but cautioned that halting UPI transactions could adversely impact trade and lead to significant losses for traders.

“The traders are now ready to register, and there is no longer any confusion,” Siddaramaiah assured. “The government will support legal trade and timely tax payments. We are committed to standing by small traders and will not burden them.”

He added that waiving old tax dues is contingent upon traders registering under the GST law. “Traders dealing only in exempt goods do not need to register. If their primary products are exempt, tax officials will not pursue them,” he explained.

Lastly, the government intends to organize workshops and seminars across Karnataka with tax officials and trade leaders to help traders and simplify GST compliance. The traders have agreed to register on the GST portal to prevent future confusion. Shetty also indicated plans for awareness initiatives to encourage trader registration.

Land Acquisition Notification for NH169 in Karnataka

MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
NOTIFICATION
New Delhi, the 17th April, 2025
S.O. 1788(E).— In exercise of powers conferred by sub-section (1) of section 3A of the National Highways
Act, 1956 (48 of 1956) (hereinafter referred to as the said Act), the Central Government, after being satisfied that for
the public purpose, the land, the brief description of which is given in the Schedule below, is required for building
(widening/two lane with paved shoulder/four laning etc.,), maintenance, management and operation of NH169
(Old NH13) in the stretch of land from Km 0.00 to Km 2.480 (Shivamogga – Managalore section) in the district of
SHIVAMOGGA in the state of KARNATAKA, hereby declares its intention to acquire such land.
Any person interested in the said land may, within twenty-one days from the date of publication of this
notification in the Official Gazette, object to the use of such land for the aforesaid purpose under sub-section(1) of
section 3C of the said Act.
Every such objection shall be made to the Competent Authority, namely, Assistant Commissioner Shivamogga
Sub-Division Shivamogga in writing and shall set out the grounds thereof and the Competent Authority shall give the
objector an opportunity of being heard, either in person or by a legal practitioner, and may, after hearing all such
objections and after making such further enquiry, if any, as the Competent Authority thinks necessary, by order, either
allow or disallow the objections.
Any order made by the Competent Authority under sub-section (2) of section 3C of the said Act shall be final.
The land plans and other details of the land to be acquired under their notification are available and can be
inspected by the interested person at the aforesaid office of the Competent Authority.

SCHEDULE
Brief Description of the land to be acquired with or without structures falling within the stretch of land from
Km 0.00 to Km 2.480 (Shivamogga – Managalore section) of NH169(Old NH13) in the state of KARNATAKA

262535 Download

Karnataka Court Upholds Tax on Set-Top Boxes

“The Court upheld the orders of the Karnataka Appellate Tribunal, which had ruled that the transfer of the right to use STBs for consideration amounts to a “sale” of goods that can be taxed.”

The Karnataka High Court has recently upheld the levy of sales tax on set-top boxes (STBs), ruling that the transfer of the right to use these devices constitutes a taxable sale under the Karnataka Value Added Tax Act, 2003 (KVAT Act).

This decision comes after a series of petitions were filed by various cable service providers, including ACT, Tata Play, and Den Network, challenging the tax imposition. They argued that STBs are merely information appliances and do not qualify as “goods” under the KVAT Act, as they remain the property of the cable operators. They also contended that the subscription fees were for activation services and not for the use of STBs.

However, the High Court dismissed these arguments, stating that the definition of “goods” under the KVAT Act is broad enough to include STBs. The court also emphasized that the subscribers have effective control over the STBs and that the subscription fees include payment for their usage.

This ruling has significant implications for the cable and DTH service providers in Karnataka, as they will now be required to pay sales tax on STBs supplied to customers. It also clarifies the legal position regarding the taxation of digital services and related hardware, setting a precedent for similar disputes across India.

Source: Click Here

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

Vehicles exempted from permit – Government of Karnataka.

VEHICLES FROM EXEMPTED FROM PERMIT – KARNATAKA GOVT.

The Karnataka government has announced that vehicles from other states heading to Mysuru will be exempted from permit tax. This is a significant move that will benefit tourists and businesses visiting the city.

Exemption applicability:

This exemption came into effect on 04th October, 2024 and will run until the conclusion of the Dasara celebrations on 12th October 2024. The waiver will apply only to tourist vehicles entering Mysuru city and the nearby Srirangapatna taluk, according to the department’s official notification.

Crux:

According to the notification, vehicles registered in States other than Karnataka and operating under special permits will be eligible for the tax exemption. The order notes that the waiver is being introduced in the public interest under the Motor Vehicles Taxation Act, 1957.

The Karnataka government hopes that this move will boost tourism and economic activity in Mysuru.

Source: Click Here

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

Infosys Tax Evasion: Karnataka GST Body’s Notice Withdrawn

Infosys announced in a regulatory filing to the stock exchanges on Thursday, August 1, that the Karnataka state GST watchdog has withdrawn the pre-show-cause notice against the company for alleged tax evasion. The tax authority has directed the software services company to submit further responses to the Directorate General of GST Intelligence (DGGI) central authority.‘’The company has received a communication from Karnataka state authorities, withdrawing the pre-show cause notice and has directed the company to submit further response to DGGI central authority on this matter,” said Infosys in its stock exchange filing on Thursday.

Taxman puts Infosys on notice for ₹32,403 croreTax authorities on Wednesday flagged indirect tax evasion of ₹32,403 crore at Bengaluru-based Infosys Ltd over services provided by its overseas branches, in one of the largest cases since the debut of the goods and services tax (GST) regime more than seven years ago. India’s second-largest information technology (IT) major believes the tax does not apply to the services.A DGGI note said it is investigating the technology blue chip for evading integrated goods and services tax (IGST) over a five-year period until FY22. The IT giant set up branch offices abroad to conduct business and included the expenses it incurred for these overseas branches as part of its export invoice from India.

Distinct persons under IGST ActAs Infosys creates overseas branches to service clients as part of its agreement with the clients, those branches and the company are each treated as ‘distinct persons’ under the IGST Act, DGGI said, adding Infosys is being investigated for ‘non-payment of IGST on import of services as a recipient of services.’

GST not applicable'”The company believes that as per regulations, GST is not applicable on these expenses. Additionally, as per a recent circular (circular number 210/4/2024 dated June 26, 2024) issued by the Central Board of Indirect Taxes and Customs on the recommendations of the GST Council, services provided by the overseas branches to Indian entity are not subject to GST,” it said.

Infosys said GST payments are eligible for credit or refund against the export of IT services and that it has responded to the notice. “Infosys has paid all its GST dues and is fully in compliance with the central and state regulations on this matter,” it said.

Big Relief to Bengaluru Residents

Karnataka Government Slashes Property Tax Penalties in Bengaluru

The Karnataka Deputy Chief Minister, DK Shivakumar, who also serves as the Bengaluru City Development Minister, has introduced a taxpayer-friendly Amendment Bill in the Legislative Assembly, offering substantial relief to the residents of Bengaluru.

Following the passage of this Amendment Bill, the penalty amount for property tax is reduced by 50%, resulting in a remarkable saving of ₹2,700 crore for Bengaluru residents. The Bruhat Bengaluru Mahanagara Palike (BBMP) is anticipated to collect penalties amounting to ₹1000 crore, indicating a significant financial reprieve for taxpayers.

This crucial Amendment is set to benefit approximately 13-15 lakh individuals in Bengaluru. Among them, 5.51 lakh are taxpayers, while 5-7 lakh fall outside the property tax bracket and 3 lakh are partial property taxpayers.

Notably, the Amendment Bill includes provisions for a special rebate targeting the underprivileged sections of society. Government residential buildings and structures in slums are exempt from property tax penalties, along with buildings up to 1,000 square feet that are utilized for personal purposes.

Under this Amendment, residential and mixed-use properties are obligated to pay property tax penalties for a maximum period of 5 years, irrespective of the default duration. Moreover, interest on dues beyond five years has been waived off, providing further relief to taxpayers.

Expressing the government’s commitment to supporting the people, Shivakumar stated, “This is a taxpayer-friendly amendment. We have brought this bill to help the common people, though it is a burden on the government,” during the Legislative Assembly session.

The impact of the previous amendment bill, which doubled the penalties on property tax dues, imposed a significant financial burden on Bangaloreans. However, the recently passed Amendment Bill by the Congress government has substantially alleviated the penalty burden on Bengaluru residents.

This proactive measure by the Karnataka government reflects its dedication to addressing the concerns of taxpayers and fostering a more equitable financial environment for the residents of Bengaluru.

The reduction in property tax penalties exemplifies a tangible step towards easing the financial obligations of Bengaluru residents and signifies the government’s commitment to promoting a taxpayer-friendly approach in governance.

States	Date of commencement	Number of Officers	Number of Actionable calls	Service Request Raised	Service Request Closed
TN	28th April 2021	8	71	25	15
MP	28th April 2021	4	163	12	5
RJ	28th April 2021	4	25	8	3
KA	28th April 2021	3	122	6	1
UP	14th May 2021	6	94	13	7

Tag: Karnataka