Amid a political standoff between the ruling Congress and the opposition BJP over the issuance of GST notices to small traders and shop owners demanding exorbitant tax payments, traders across the state have launched a three-day agitation beginning Wednesday.

As part of the protest, traders stopped serving milk, coffee, and tea to customers in their stores, and many wore black badges.

Key Highlights

• Notices were sent based on digital receipts from FY 2021‑22 to 2024‑25—many traders claim these turned taxable turnover, including exempt items, unfairly.
• Protesters have removed QR codes and shifted to cash-only transactions amid fear of penalties and seizures.
• Chief Minister Siddaramaiah initiated the “Know GST” campaign and convened a stakeholder meeting to address concerns and mitigate disruption

The decision has been made to boycott the sale of cigarettes, beedis, and all tobacco-related products on Thursday (July 24). On Friday (July 25), the traders intend to shut down their shops and establishments and hold a massive protest at Bengaluru's Freedom Park.

The traders are also considering going on an indefinite strike unless the GST notices are withdrawn.

Meanwhile, Chief Minister Siddaramaiah has convened a meeting with aggrieved parties and trade associations at his official residence in Bengaluru. However, Karnataka State Karmika Parishat President Ravi Shetty responded to CM Siddaramaiah's decision to address the issue by stating that his organization would not attend the meeting.

"We started the agitation against the GST notices for traders. However, the state government has only invited those trade associations that already pay taxes. The meeting should have included small traders who had received GST notices demanding payments of up to Rs 50 lakh. Our organisation received the invitation solely for formal purposes. "We will not be attending the meeting," Ravi Shetty said.

Also Read: Bengaluru Street Vendors Seek GST Relief After UPI Payments Cross Rs 40 Lakh

Union Minister for Food, Public Distribution, and Consumer Affairs Pralhad Joshi has clarified that the GST notices issued to small-scale traders in Karnataka are the responsibility of the state government, not the central government.

The Karnataka BJP has slammed the Congress-led government in the state for allegedly issuing GST tax notices to small traders, accusing it of obstructing the Centre's digital revolution. In the midst of a GST controversy, the party has also announced the establishment of a helpline to protect the interests of the state's small traders.

Responding to the BJP, Karnataka Deputy Chief Minister and State Congress President D.K. Shivakumar stated that the BJP is attempting to fix the Congress government in the state over the GST row.

"BJP is trying to eat the banana and wipe it on our nose by issuing GST notices to small traders," said the Deputy Chief Minister, referring to the state's opposition BJP.