Bengaluru traders to strike over GST notices from July 23

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Small traders in Bengaluru have threatened a three-day strike starting  July 23, protesting against GST notices linked to UPI transactions, TimesNow has reported. The Karnataka government, in response, has rolled out a statewide awareness campaign, Know GST, to address concerns, with the first workshop held in Koramangala on Monday.

The traders, including milk vendors and bakery owners, plan to wear black badges while suspending sales of milk and milk-based products on July 23 and 24. The protest will culminate in a bandh (shutdown) at Freedom Park on July 25, backed by cab and auto drivers who fear similar GST scrutiny.

The dispute stems from GST notices sent to over 14,000 traders after their UPI transactions allegedly revealed turnovers exceeding the taxable threshold, Rs 40 lakh for goods and Rs 20 lakh for services. Some vendors were reportedly asked to pay arrears nearing Rs 40 lakh, prompting many to stop accepting digital payments altogether.

Ravi Shetty Byndoor, president of the Karnataka Labour Council, called the move "arbitrary and illegal," arguing that UPI transactions include personal payments and may not reflect actual business income. TimesNow quoted him saying, "The commercial taxes department was in a slumber since GST rolled out in 2017 and has suddenly woken up to claim arrears."

Chief Minister Siddaramaiah, who also holds the finance portfolio, has assured traders he will raise the issue with the Centre in the next GST Council meeting. Meanwhile, the state’s Commercial Taxes Department has launched a helpline (1800 425 6300) and plans workshops to clarify compliance rules.

Commissioner Vipul Bansal, however, denied allegations of coercion, stating, "The notices we served aren't tax demands - we haven't assessed the tax yet. We are only asking traders to submit transaction details," as reported by TOI.

As per TimesNow, the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has supported the strike, calling the tax demands unfair without proper education. At a recent session attended by 70 traders, officials reiterated that they were merely enforcing central GST rules. Yet, traders found the explanations vague, with many alleging harassment over alleged non-compliance dating back to 2021–22.

Vendors argue that falling profits, stiff competition and sudden tax enforcement are squeezing their livelihoods. Some claim to have received notices despite earning below taxable thresholds. Officials have urged them to submit proof via trade associations for review.