KSCAA Calls for Professional Tax Portal Upgrades to Resolve OTP & Payment Issues

Karnataka State Chartered Accountants Association (KSCAA), established in 1957, represents Chartered Accountants and advocates for effective resolutions to professional challenges. In a letter to the Karnataka Chief Minister, the KSCAA highlights critical issues with the Professional Tax portal under the Karnataka Tax on Professions, Trades, Callings, and Employment Act, 1976. Key concerns include delays in GST-related enrollment registration, inefficiencies in two-factor authentication causing OTP delivery failures, and inadequate password reset options. The Association also raises issues like incomplete registration categories for non-GST entities, limited payment options, frequent technical glitches during payments, and recurring login errors stating “User does not exist.” These challenges disrupt taxpayers’ compliance efforts. The KSCAA recommends streamlining registration, enhancing OTP delivery reliability, expanding payment options, fixing technical issues, and improving customer support to address these concerns effectively. The letter emphasizes the need for an efficient tax administration system to foster ease of doing business in Karnataka.

Karnataka State Chartered Accountants Association (R) 

To,
Sri Siddaramaiah,
Chief Minister and Finance Minister,
Government of Karnataka

Ref No: 010/2024-25 Date: 14^th February 2025

SUBJECT: REPRESENTATION REGARDING UPGRADES ON THE PROFESSIONAL TAX WEBSITE UNDER THE KARNATAKA TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENT Act, 1976

The Karnataka State Chartered Accountants Association (R) (in short ‘KSCAA’), established in 1957 and registered under the Karnataka Societies Registration Act, is committed to advocating for the welfare of Chartered Accountants. Our mission is to represent their interests before regulatory authorities and address the professional challenges faced by both Chartered Accountants and the business community, endeavoring for effective resolutions.

Through this representation, we bring to your kind attention the need for certain critical upgrades and enhancements to the Professional Tax portal under the Karnataka Tax on Professions, Trades, Callings, and Employment Act, 1976 (“the Act”).

1. Time lag initiating enrolment registration

Currently, there is a considerable delay in enabling the GST registration on the Professional Tax porta for dealers registered under the Karnataka Goods and Services Tax Act, 2017. This delay disrupts the timely registration of the establishment and payment of professional tax for newly registered GST dealers.

We humbly request the reduction of this time lag to streamline the enrollment registration process, ensuring timely compliance for taxpayers.

II. Two-factor authentication & reset of password

The recent implementation of two-factor authentication (requiring a username, password, and OTP) at the time of login has created significant challenges:

• Accountants and consultants face difficulty accessing past data due to the OTP requirement.
• OTPs are frequently not delivered
• The portal erroneously flags registered mobile number as invalid

Moreover, registered individuals are unable to reset or re-register their passwords and mobile numbers on the portal, which affects their ability to meet monthly compliance requirements.

To resolve these issues, we recommend the following actions:

• Discontinuance of the OTP requirement for portal login, which would streamline access while maintaining adequate security for sensitive actions.
• Implementation of a more reliable OTP delivery system, such as email or alternative messaging platforms, to ensure OTPs are delivered promptly and consistently.
• Establishment of dedicated customer support channels (e.g., chat support or a helpline) for users facing issues with login, OTP delivery, and mobile number registration.

III. Limited Categories for Non-GST Entities

During the registration and payment process for entities that are not required to be registered under GST, the available categories sought for registration are not complete according to the Schedule (Rates of tax on professions, trades, callings, and employments).

We request that all categories listed in the Schedule be reflected on the portal, ensuring accurate and comprehensive registration options for taxpayers.

IV. Limited Payment Options

The payment options available on the portal are currently limited to a few banks.

We request the integration of additional banks to offer greater flexibility and ease of payment for taxpayers.

V. Snags at the time of payment and error after making payment

Taxpayers are encountering frequent technical issues while making payments on the portal. These issues include instances where the payment page fails to load or the payment option becomes unavailable. Additionally, after a payment is successfully made, the system either fails to redirect back to the Professional Tax portal or displays an error message, leaving taxpayers uncertain about the payment status. In such cases, users are forced to wait for a considerable amount of time before verifying the payment status manually.

We urge you to address these technical glitches and enhance the payment system’s functionality to ensure seamless and reliable payment processing.

VI. User does not exist

Taxpayers frequently encounter an error message stating “User does not exist” when attempting to log in, despite being registered on the portal. This issue prevents users from accessing their accounts, completing compliance tasks, and making payments.

We request that this recurring issue be addressed promptly to ensure all registered users can log in seamlessly without encountering such errors.

We are confident in your leadership and commitment to fostering an efficient and fair tax administration system. Addressing these concerns will not only remove the challenges faced by taxpayers but also reinforce public confidence in the government’s commitment to ease of doing business.

In light of the difficulties encountered, we, the members of the Karnataka State Chartered Accountants Association, respectfully urge you to consider our request on behalf of the entire Chartered Accountants community and the trade and industry in Karnataka.

Yours sincerely,

For Karnataka State Chartered Accountants Association ®

Cc to:

1. Shri Vipul Bhansal, Commissioner of Commercial Taxes, Government of Karnatak