Bengaluru is bracing for a partial shutdown on July 25 as thousands of small business owners—including bakery, condiment, and petty shop operators—plan to go on strike. Their grievance: GST notices issued based on UPI transactions that exceeded the legal threshold.
These businesses, many unregistered under GST, say they’ve received sudden tax demands from the Karnataka Commercial Taxes Department, creating panic across the trading community.
Why the Bandh Was Triggered
The issue stems from GST notices sent to traders whose digital payment receipts exceeded ₹40 lakh (for goods) or ₹20 lakh (for services) during FY 2021-22. Over 5,500 vendors have already received notices, some with digital transactions crossing ₹2 crore. Many are now pulling back from UPI completely, saying they’re being wrongly penalized despite low actual profits.
Three-Day Protest Timeline
The bandh is part of a larger three-phase protest:
- July 23: Milk sales suspended
- July 24: Ban on gutka and cigarette sales
- July 25: Full closure of small shops, bakeries, and condiment outlets
This coordinated action is meant to send a strong message to the government about the need for policy clarity and fair enforcement.
‘No UPI, Only Cash’: A Digital Backlash
Across markets like KR Market and Shivajinagar, vendors are removing QR codes and putting up signs saying “No UPI, Only Cash.” A shopkeeper from Horamavu said he earns just ₹3,000 daily but has received a tax notice for lakhs, pushing him to abandon digital payments altogether.
Traders Demand Clarity, Not Penalties
Tax officials insist the notices only went to businesses crossing thresholds, but traders say there’s a lack of proper communication. Experts and advocates are urging the government to:
- Provide a grace period for micro businesses
- Launch GST awareness programs
- Engage in dialogue with trade unions
Conclusion: A Wake-Up Call for Policymakers
The July 25 bandh is more than just a protest—it’s a loud appeal for balanced digital governance. Small businesses helped drive India’s UPI revolution, and their voices now call for empathy, education, and reform—not intimidation.
