- By Chetna Shree
- Thu, 24 Jul 2025 03:08 PM (IST)
- Source:JND
Bengaluru Bandh On July 25: The small vendors and traders in Bengaluru, who were protesting against the Goods and Services Tax (GST) notice issued by the government to those whose annual UPI transactions crossed Rs 40 lakh, have called off their strike following a meeting with Karnataka Chief Minister Siddaramaiah. Trade bodies have confirmed that the Bengaluru Bandh scheduled on July 25 has been called off.
All services in Bengaluru, including banks, educational institutions, shops and hospitals, will function as usual tomorrow. The Bandh was called to protest against the Goods and Services Tax (GST) notice issued by the government to the traders whose annual UPI transactions crossed Rs 40 lakh. Following the notice, several traders and vendors stopped using UPI and switched to cash payments.
Chief Minister Shri @siddaramaiah held a meeting with representatives of trade unions today regarding the recent GST notices issued to small businesses, and later addressed the media to clarify the issue and share the government’s stance.
— CM of Karnataka (@CMofKarnataka) July 23, 2025
• Representatives from various trade… pic.twitter.com/I3bqBe7cAy
The Karnataka Chief Minister Siddaramiah held a meeting with the trade representatives. During the meeting, the trade representatives voiced their concerns over confusion surrounding GST rules on small traders, particularly regarding the loan amount and personal transactions. The trade representatives urged the state governments to allow them to resolve such issues directly with the commercial tax department. Additionally, they requested a dedicated helpline, awareness campaigns to clarify GST norms and a one-time waiver of outstanding tax arrears.
ALSO READ: Bengaluru Shopkeepers Say No To UPI After Receiving GST Notices, Ask Customers To Pay In Cash
In response, Karnataka CM assured the traders that old tax arrears would not be pursued if the traders have registered under GST and are committed to paying taxes. Additionally, he clarified that the notices were sent to those whose UPI transactions exceeded Rs 40 lakh, which triggered mandatory GST registration under the law.
Siddaramaiah further said, “No taxes would be levied on traders dealing in exempt goods such as milk, vegetables, meat, and fruits.” However, he emphasised that those falling under the taxable category must comply with GST requirements.
Following a meeting with CM Siddaramaiah, the trade representative said, “Trade union representatives clarified that no associations have supported the proposed business shutdown, and all planned protests on this issue will be withdrawn.”