New Delhi, Aug. 7 -- The Central government's indirect tax administration plans a gentle approach to pull more retail traders and vendors into the goods and services tax net, unlike Karnataka and Tamil Nadu's direct efforts that resulted in a backlash, two officials said.

Traders and vendors with annual sales above Rs.40 lakh are required to be registered under the GST umbrella, but several don't. Vendors in Karnataka launched protests after state tax authorities issued notices based on their UPI transactions. Some of those who received the notices were vendors of vegetables, which are exempt from GST.

Central authorities will employ smoother ways to widen the tax base among the politically active and unionised trading community.

The C...