Bengaluru Bandh on July 25? Bakery, Condiment Shops to Shutdown for the Day, Here's Why

Bengaluru is set to witness a partial shutdown on July 25, as thousands of small business owners including bakery, condiment, and petty shop operators have called for a bandh in protest against GST notices issued over UPI-based transactions.

The bandh has been triggered by outrage over recent notices issued by the Karnataka Commercial Taxes Department. These were sent to businesses that had accepted digital payments exceeding ₹40 lakh, which is the GST threshold for goods, and ₹20 lakh for services. Among those impacted are several small traders and unregistered vendors who claim they are now facing unjust tax demands.

Three-Day Protest Plan

The traders have announced a three-phase protest:

July 23: Suspension of milk sales

July 24: Ban on gutka and cigarette sales

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

Why Are Traders Protesting?

Once known as a pioneer in digital payment adoption, Bengaluru is now witnessing a sharp reversal. Small vendors across the city are abandoning UPI transactions and returning to cash-only payments out of fear.

The reason: GST notices based on their UPI transaction history from FY 2021-22 onwards. Officials identified around 14,000 traders whose digital receipts crossed legal GST thresholds-yet they hadn't registered under GST.

More than 5,500 vendors have already received notices, with some reportedly showing UPI transactions of over ₹2 crore linked to a single PAN card. Traders say they are being unfairly targeted and fear harassment, seizure of goods, and even eviction from public spaces.

QR Codes Disappear, 'No UPI, Only Cash' Signs Rise

Across Bengaluru's markets, including Horamavu, KR Market, and Shivajinagar, vendors have begun removing QR codes. Many stalls now display printed or handwritten signs: "No UPI, Only Cash."

Shankar, a shopkeeper in Horamavu, shared, "My daily sales are barely ₹3,000, but I've been served a GST notice demanding lakhs. I've stopped accepting UPI completely."

The Karnataka Commercial Tax Department maintains that only those crossing GST thresholds were sent notices. They are urging traders to:

Register under GST or the Composition Scheme

Submit valid evidence and clarifications

Avoid panic and respond legally instead of halting operations

Former tax official HD Arun Kumar emphasized the need for due diligence before demanding payments. "Authorities must validate data before enforcing penalties," he said.

Advocate Vinay K Sreenivasa, Joint Secretary of the Federation of Bengaluru Street Vendors Associations, said,"many vendors fear harassment by GST officers and possible eviction by civic authorities, prompting them to switch to cash."

This unrest signals the growing mistrust between small traders and digital governance. While UPI brought convenience and transparency, lack of clarity and poor outreach about compliance has created fear.

Experts are urging the government to:

• Offer relaxation windows for micro businesses
• Build awareness programs
• Conduct dialogue with trader unions

The Bengaluru Bandh on July 25 is not just about bakery closures-it's a cry for help from thousands of small traders trying to survive in a rapidly digitising economy. Whether the bandh will push authorities toward a more compassionate approach remains to be seen.