The Commercial Taxes Department, Karnataka is administering the Karnataka Sales Tax Act, 1957 right from the Mysore Sales Tax Act, 1957 was enacted by the Mysore State Legislature in the Eighth Year of the Republic of India and first published in the Mysore Gazette on the Thirtieth day of September; 1957. The concerted efforts of the States paved way for introduction of the Value Added Tax System with effect from 1-4-2005 in the place of the Sales Tax System. However, even after introduction of the Karnataka Value Added Tax Act, 2005, the commodities namely Petroleum Crude, Motor Spirit (Petrol), High Speed Diesel and Aviation Turbine Fuel were continued to be taxed under the provisions of the Karnataka Sales Tax Act.
The Central Sales Tax Act provided for the levy, collection of taxes on sale of goods in the course of inter-State trade or commerce.
Under the Karnataka Tax on Entry of Goods Act, 1979, eleven commodities including Petroleum Products. Textiles, Tobacco Products were being taxed at the rates varying from 1 to 5%.
The Mysore Betting Tax Act, 1932, provided for levy of tax on the bets placed on horse race and it was being administered by the Department of Commercial Taxes.
The Karnataka Tax on Luxuries Act, 1979 which authorized the State to levy and collect tax on luxuries provided in the hotel, on the luxuries provided in marriage halls, conference halls, clubs, hospitals, etc.
The Karnataka Entertainments Tax Act, 1958 authorized to levy tax on Cinematograph Shows, Cable TV, Amusements, Pageants, Performance, Recreation Parlors , etc.
Goods and Services Tax Act, 2017 was enacted by the Karnataka legislature and published in Karnataka Gazette on 26-06-2017 and implemented from 1st July 2017 which subsumed all the indirect taxes administered by the Commercial Taxes Department as specified above. The Goods and Services Tax is applicable to all goods other than alcoholic liquor for human consumption and five petroleum products, viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel. It would apply to all services barring a few to be specified.
The Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, is not being subsumed in the Goods and Services Tax Act, authorizes to levy tax on salaried employees and specified self-employed persons with the highest tax payable per annum being Rs.2500/-.
The Commercial Taxes Department, Karnataka, is of the firm belief that the Information and Communication Technology Tools should be utilized effectively and efficiently for electronic governance aimed at simplifying procedures, bringing in transparency, making need based, good quality and timely information available to all taxpayers and providing all services in an efficient and cost-effective way.
National Informatics Centre (NIC), Bangalore is software solution provider, establishing the interface between the Goods and Services Tax Network (GSTN) and developing and supporting the application software for backend processes like monitoring the defaulters, audit, inspection, assessment/reassessment, recovery, appeal, refund etc. required for the Commercial Taxes Department.