Karnataka traders threaten shutdown over GST notices
Thousands of small traders across Karnataka—think bakers, shopkeepers, and snack vendors—are planning a state-wide strike on July 25.
They're upset about new GST notices they've received after the tax department flagged their UPI transaction history.
About 14,000 businesses with annual UPI turnovers above ₹40 lakh from FY 2021-22 through FY 2024-25 are under scrutiny for not registering or complying with GST rules.
Crackdown making waves
This crackdown is making waves because Karnataka is huge on digital payments, and a lot of local businesses could be pushed back to cash-only dealings out of fear.
Many traders say the tax demands are unfair and run into crores, with threats of bank account freezes and shop closures if dues aren't paid by July 21.
Protests will even pause milk sales on July 23 and 24.
If this approach spreads to other states, it could change how digital payments are monitored—and make things trickier for small business owners who just went digital.