Karnataka Entry Tax: Repeal, GST and Legacy Dues
Karnataka no longer levies fresh entry tax under the former Karnataka Tax on Entry of Goods Act, 1979. That Act was repealed when the Karnataka Goods and Services Tax Act, 2017 came into force. Current transactions generally fall under GST, while older entry-tax assessments, arrears and proceedings may continue under statutory saving provisions.
vat.kar.nic.in/epay are no longer appropriate as a current general payment guide. The Karnataka Commercial Taxes Department itself lists the Karnataka Tax on Entry of Goods Act, 1979 among repealed tax laws.
Karnataka Entry Tax was repealed under the KGST Act, 2017
Section 173 of the Karnataka Goods and Services Tax Act, 2017 repealed several pre-GST State tax enactments, including the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979) and the Karnataka Special Entry Tax Act, 2002.
Accordingly, the former entry-tax regime is not the law for fresh post-GST transactions. Businesses should not calculate or pay a new entry-tax liability merely because goods enter a local area in Karnataka under the old 1979 Act.
What applies now instead of Entry Tax?
The primary indirect tax framework is now the Goods and Services Tax. Depending on the nature and location of a supply, CGST and KGST or IGST may apply. Movement of goods may also trigger e-way bill requirements under GST rules where the statutory conditions are met.
The Karnataka Commercial Taxes Department continues to publish the KGST Act, rules, notifications, circulars and later amendments. Its current GST law page includes amendments through 2025.
GST Common Portal Karnataka GST Laws
What happens to old Entry Tax dues?
Repeal does not automatically wipe out liabilities that arose while the old law was in force. Section 174 of the KGST Act, 2017 contains saving provisions that preserve, among other things, the previous operation of repealed Acts and actions, rights, obligations, liabilities, penalties, investigations, assessments and legal proceedings arising under them, subject to the wording of the statute.
Therefore, an old assessment, arrear demand, appeal, recovery proceeding or other liability relating to a pre-GST tax period may still need to be dealt with under the repealed legislation and applicable saving provisions.
The State has also issued post-GST orders concerning administration of legacy entry-tax matters. For example, the Karnataka Tax on Entry of Goods (Removal of Difficulties) Order, 2020 addressed limitation and assessment-related issues for older tax periods.
How to make a current tax payment
| Type of liability | Where to proceed | Important point |
|---|---|---|
| Current GST liability | GST Portal | Use the electronic cash/credit ledger and applicable GST return/payment process. |
| Karnataka GST law, notification or circular | Karnataka Commercial Taxes Department | Verify the latest KGST law, rules and State notifications before acting. |
| Legacy Entry Tax demand | Karnataka Commercial Taxes Department / authority named in the demand | Follow the payment method stated in the current demand, recovery notice or official departmental instruction. |
Official links
- Karnataka Commercial Taxes Department
- Karnataka GST laws and amendments
- Pre-GST and repealed Karnataka tax laws
- Karnataka Tax on Entry of Goods Act, 1979 - legacy text
- GST Common Portal
Frequently asked questions
Is Karnataka Entry Tax still applicable in 2026?
Not as a fresh levy under the Karnataka Tax on Entry of Goods Act, 1979. That Act was repealed by Section 173 of the KGST Act, 2017. Current transactions are generally examined under GST and other presently applicable laws.
Can the department still recover old Entry Tax?
Potentially yes. Section 174 of the KGST Act contains saving provisions for liabilities, assessments and proceedings arising under repealed laws. The validity and amount of any particular demand depend on the relevant tax period, order, limitation rules and other facts.
Should I use the old VAT e-payment link to pay Entry Tax?
Not for a fresh current liability. For any legacy demand, use only the payment route currently prescribed by the Karnataka Commercial Taxes Department or stated in the official demand/order.
Last reviewed: 28 August 2026. This page provides general legal and tax information and does not replace professional advice on a particular assessment, demand or transaction.