New Delhi/Bengaluru, Oct 8 — Karnataka Chief Minister D.K. Shivakumar on Thursday said he had received "good news" regarding the state's long-pending dues after discussions with Union Finance Minister Nirmala Sitharaman, but declined to disclose details immediately.
"I discussed the issue of our state’s old pending dues with the Finance Minister, and I have received some good news. I will not reveal anything about it now. I will speak about it later," Shivakumar told reporters at Karnataka Bhavan after attending the GST Council meeting in New Delhi.
The GST Council meeting was held in a positive manner, and Karnataka’s concerns were accepted by the other states, he said.
"The GST Council meeting went very well. Everyone accepted Karnataka’s points," he said.
He also said there was a discussion on the proposal not to register criminal cases and arrest people who fail to pay GST.
Shivakumar said such action should not be taken indiscriminately and that GST recovery should be carried out in accordance with the rules and provisions governing income tax and other applicable regulations.
"The issue of filing criminal cases and arresting those who do not pay GST was discussed. It should be done according to the income tax rules and regulations. It is not right for officials to unnecessarily arrest businessmen," he said.
He said the authorities should focus on recovering the amount due from taxpayers rather than resorting to arrests.
"Let us collect from them whatever amount they are required to pay. Arresting them is not right. This was discussed," Shivakumar said.
According to the Chief Minister, almost all states supported this view, with only one state differing.
He said the discussion was aimed at ensuring that enforcement measures under the GST regime were not misused against traders and businesspeople.
The Chief Minister’s remarks came after the GST Council meeting in New Delhi, where issues concerning GST administration and revenue collection were discussed.
Shivakumar also indicated that the Centre’s response on Karnataka’s pending dues could be announced at a later stage, after further discussions with the Union Finance Ministry.