GST notices to small vendors: Karnataka tea, coffee on strike
Across Karnataka, bakeries, milk vendors, and tea stalls have paused sales of tea, coffee, and milk after small traders got GST notices based on their UPI payments.
Many businesses—run by everyday folks—were flagged for having turnovers above ₹40 lakh (goods) or ₹20 lakh (services) between FY 2021-22 and FY 2024-25.
Vendors wearing black badges in protest
This crackdown has left small traders anxious and switching back to "cash only" to avoid big tax bills.
Vendors are wearing black badges in protest, serving only black tea at some spots, and planning a statewide bandh on July 25, 2025 with a rally in Bengaluru.
Trader groups say the GST notices feel unfair and want them withdrawn—and even the Chief Minister has stepped in for talks.
For many small vendors or anyone using digital payments for business, this highlights how tax rules can suddenly shake up daily life.
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