July 25 Bengaluru Bandh: Will There Be a Shutdown On Friday?

With news of a possible Bengaluru bandh spreading across the city, many residents were left wondering: Will shops shut? Will transport stop? Will schools remain open on July 25? The answer is no-the bandh has officially been called off.

Small-scale traders and vendors in Bengaluru had announced a citywide bandh on July 25 in protest against Goods and Services Tax (GST) notices. However, after a detailed meeting with Karnataka Chief Minister Siddaramaiah on Thursday, the protest was withdrawn and normalcy restored.

As a result, all services-including banks, schools, colleges, hospitals, shops, and public transport-will operate as usual on Friday, July 25. The bandh will not take place.

Why Was the Bengaluru Bandh Called in the First Place?

The protest began after the Karnataka Commercial Tax Department sent GST notices to traders whose UPI transactions crossed ₹40 lakh in a financial year. Many small businesses feared retrospective taxation and stopped accepting digital payments, switching to cash-only mode.

The unrest particularly impacted daily-use vendors like tea stall owners, bakery operators, and street food sellers.

What Did the Traders Demand?

During the meeting, trader representatives expressed confusion over GST regulations-especially regarding personal transfers and loan repayments. Their key demands included:

A dedicated helpline to clarify GST-related concerns

State-wide awareness campaigns to educate small businesses

A one-time waiver for previous tax dues

According to latest update, Chief Minister Siddaramaiah reassured traders that: "Notices were issued only to those whose UPI transactions crossed ₹40 lakh, which triggers mandatory GST registration. No past dues will be recovered if they agree to register and comply moving forward."

He further clarified that traders dealing in tax-exempt goods like milk, fruits, vegetables, and meat will not face any penalties.

What Happens Now?

With the bandh officially withdrawn, Bengaluru will function normally on July 25. No disruptions are expected. The state government is also considering long-term measures to support small businesses, including better communication on tax rules and simplified compliance.