Bengaluru: The city is bracing for a partial shutdown on July 25, as thousands of small-scale traders — including bakeries, condiment shops, and petty vendors — plan to go on strike. The protest stems from GST notices issued by the Karnataka Commercial Taxes Department, targeting businesses with UPI transactions exceeding ₹40 lakh for goods and ₹20 lakh for services during FY 2021–22.

Several unregistered vendors who had embraced digital payments now find themselves slapped with heavy tax demands. The backlash has triggered a three-day phased protest:

  • July 23: Suspension of milk sales

  • July 24: Boycott on selling gutka and cigarettes

  • July 25: Full closure of bakeries, condiment shops, and petty stores

    • Small traders allege they are being penalized for adopting digital payments, which were previously promoted by the government. Fear of seizures, legal action, and eviction has led many to ditch UPI and revert to cash-only transactions. QR codes have vanished from stalls across markets like KR Market, Shivajinagar, and Horamavu, replaced with handwritten signs: “No UPI, Only Cash.”

    Officials argue the notices were only sent to those exceeding the GST threshold and urge traders to register under GST, submit clarifications, or join the Composition Scheme. However, legal experts and advocacy groups say the government failed in outreach and education, creating fear rather than compliance.

    The bandh is a desperate call from Bengaluru’s micro traders for clarity, compassion, and corrective action in the era of digital governance.