Karnataka became the First Indian State to Launch an e-payment System

Karnataka on 12 may 2011 became the first state in India to launch an e-payment system for commercial tax payers. With e-payment system in place, the dealers can remit their commercial taxes anytime, anywhere. They need not approach an office of the Commercial Taxes Department (CTD) in person. At present, e-remittances can be made from six banks-SBI, SBM, SBH, Syndicate Bank, Canara Bank and Union Bank of India.
    
The CTD collection is more than Rs 2,000 crore per month and till now, these collections were made through cheques by the dealers.

This involved a huge amount of manual work and delay in realisations of amount and some cases of bounced cheques also. Besides, dealers faced inconvenience as they had to come to the respective offices and wait in a long queue to remit the tax.