Bengaluru: Small traders across Karnataka have launched a symbolic protest against the GST department’s recent enforcement drive, which is based on digital payment data. Accusing tax authorities of targeting them unfairly, bakery and tea shop owners have stopped selling milk-based tea and coffee, offering only black tea and black coffee instead. The protest is also marked by shopkeepers wearing black armbands to express dissent.
The protest was sparked by GST notices being issued to traders based on Unified Payments Interface (UPI) and other digital transactions recorded between the financial years 2021 and 2024. According to officials, notices are being served to businesses where digital transactions exceeded ₹20 lakh for services and ₹40 lakh for goods.
VIDEO | Bengaluru: Karnataka Bakery Union to protest in Bengaluru on July 24 against the issuance of GST notices to small traders by the Commercial Tax Department. Here's what DB Pratap Shetty, Karnataka State Bakery, Condiments and Small Entrepreneurs Federation President said:… pic.twitter.com/dqFSbrO5hK
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Shankargouda, a vegetable trader from Haveri, revealed that he received a GST notice demanding ₹29 lakh, citing digital transactions worth ₹1.63 crore over four years. Traders allege that such actions are causing unnecessary fear and confusion, especially among small and marginal businesses.
Amid growing concerns, several shop owners have started refusing UPI payments and are displaying “No UPI” signs outside their establishments. Many have reverted to cash-only transactions to avoid being brought under the tax scanner.
Business associations have announced a statewide bandh on July 25, demanding immediate withdrawal of the GST notices. Traders have warned that the agitation will intensify if their demands are not met.