In response to a wave of GST notices issued to small traders across Karnataka, a three-day protest culminating in a statewide bandh has been announced. The agitation, led by various trade associations and supported by street vendors, cab drivers, and small business owners, is set to begin on July 23 and conclude with a complete shutdown on July 25.
Timeline of the Protest
July 23–24: Traders will operate wearing black badges and suspend the sale of milk and milk-based products as a symbolic gesture.
July 25: A full-scale bandh will be observed, with shops, bakeries, tea stalls, and small retail outlets voluntarily shutting down across the state. A mass protest is scheduled at Freedom Park in Bengaluru, the epicenter of the demonstration.
Triggering the Unrest The protest stems from GST notices served to over 14,000 traders, tracked via UPI transactions. Many vendors were asked to pay taxes amounting to ₹30–40 lakh, sparking outrage over what they call arbitrary enforcement3. Traders argue that digital payments include personal transactions and do not accurately reflect taxable turnover.
Government Response Chief Minister Siddaramaiah, who also holds the finance portfolio, has launched a “Know GST” campaign to educate traders on compliance and promised to raise the issue at the upcoming GST Council meeting3. The Commercial Taxes Department clarified that the notices are not tax demands but requests for transaction details.
mpact on Daily Life While essential services like hospitals, public transport, and government offices are expected to remain operational, the bandh will disrupt daily commerce in urban centers such as Bengaluru, Mysuru, and Hubballi. Milk distribution and small-scale retail are likely to be affected.
What Traders Demand Protesters are calling for:
Withdrawal of GST notices
Clear guidelines on digital payment scrutiny
Protection for small businesses from retrospective tax demands
As Karnataka braces for the bandh, the protest highlights the growing tension between digital payment adoption and tax enforcement. Whether the government’s outreach efforts will ease trader concerns remains to be seen.