Karnataka: GST & labour compliance
Everything that is specific to Karnataka (कर्नाटक) for GST, professional tax and the Labour Codes — GST state code 29.
- GST state code
- 29
- Registration threshold — goods
- ₹40,00,000
- Registration threshold — services
- ₹20,00,000
- Composition limit (goods)
- ₹1.5 crore
- QRMP GSTR-3B due date
- 22nd of the month after the quarter
- Professional tax
- Levied — see slabs
- Labour Welfare Fund
- ₹50 + ₹100 yearly
- Labour Code notifications
- None tracked yet
GST in Karnataka
A sale where the supplier and the place of supply are both in Karnataka carries CGST plus SGST, split equally. A sale to a buyer in another state carries IGST instead, and that tax goes to the destination state.
Registration threshold
A business that supplies only goods can stay unregistered up to ₹40,00,000 of aggregate turnover. The higher limit is lost if you supply any taxable service, or deal in ice cream, pan masala or tobacco products; those businesses register at ₹20,00,000.
Inter-state sales of goods need registration from the first rupee, whatever the turnover. Use the registration checker for the other compulsory cases.
Composition scheme
Manufacturers, traders and restaurants in Karnataka can opt for composition up to ₹1.5 crore of turnover. Service providers have a separate ₹50 lakh limit. Composition dealers cannot sell across state lines or claim input tax credit.
Quarterly returns
Karnataka is in the first QRMP group, so small taxpayers on quarterly filing submit GSTR-3B by the 22nd of the month after each quarter. Tax for the first two months of the quarter is still paid monthly by the 25th, through form PMT-06.
Reading a Karnataka GSTIN
Every GSTIN issued in Karnataka starts with 29. Characters 3 to 12 are the holder's PAN, the 13th counts registrations under that PAN in the state, the 14th is Z by default, and the 15th is a checksum. A GSTIN that starts with 29 but fails the checksum was mistyped. Check one in the GSTIN validator.
Professional tax in Karnataka
Karnataka charges professional tax on monthly income. The top slab is ₹200 a month once income passes ₹24,999, and the Constitution caps the total at ₹2,500 a year. In February, ₹300 is deducted so the year adds up to ₹2,500.
Deducted monthly and paid by the 20th of the following month.
Employers register (PTRC) and enrol (PTEC) on the Karnataka Professional Tax portal (pt.kar.nic.in).
Labour Welfare Fund in Karnataka
Karnataka runs a Labour Welfare Fund: ₹50 per employee from the employee and ₹100 from the employer each year, deducted in december.
By 15 January for the previous calendar year, paid online at klwbapps.karnataka.gov.in.
Labour Code rules in Karnataka
The four Codes are in force nationally from 21 November 2025. Procedures, forms and some thresholds depend on rules framed by each state.
Open the state tracker →Tools for Karnataka
Frequently asked questions
What is the GST state code of Karnataka?
29. Every GSTIN registered in Karnataka begins with 29.
When is quarterly GSTR-3B due in Karnataka?
QRMP taxpayers in Karnataka file GSTR-3B by the 22nd of the month after each quarter.
What is the GST registration limit in Karnataka?
₹40,00,000 for suppliers of goods and ₹20,00,000 for services, based on all-India aggregate turnover.
Is there professional tax in Karnataka?
Yes. See the Karnataka professional tax page for current slabs.
Is there Labour Welfare Fund in Karnataka?
Yes. Karnataka deducts ₹50 per employee each year.
Where do I track Karnataka's Labour Code rules?
The state tracker has no verified notifications for Karnataka yet. Open it to check the current status of all four Codes.