**Bakeries and Condiment Stores in Karnataka Protest Tax Notices**
Bakeries and condiment stores across Karnataka staged a symbolic protest on Wednesday, halting the sale of tea, coffee, and milk in response to tax notices issued by the Commercial Tax Department targeting small-scale vendors. Small traders donned black badges and ceased beverage sales for the day, alleging that the department is unfairly singling them out.
Labour activist Ravi Shetty, present at one of the protest sites, stated, “Today we are wearing black bands on our arms. No bakery is selling milk. Only black tea will be available as a mark of protest.” The protest primarily impacted beverage counters in bakeries and condiment shops, while other commercial activities continued as normal. Some establishments opted to serve only black tea and black coffee, signaling their dissent against the tax measures.
This agitation arises from increasing frustration among small vendors regarding recent GST notices from the department. Traders have warned of escalating protests if these notices are not rescinded. In light of the unrest, Chief Minister Siddaramaiah has scheduled a meeting at his residence at 3 PM today to discuss the situation with small trader representatives.
The enforcement drive has instilled fear among small vendors statewide, prompting many to transition to “cash-only” operations. The crackdown, based on data from UPI and other digital payment platforms from FY 2021–22 to FY 2024–25, has resulted in notices being sent to traders whose digital receipts exceeded Rs 20 lakh for services or Rs 40 lakh for goods. Officials clarified that the payment method—whether UPI or cash—does not matter; total turnover, including cash sales, is what counts.
Caught off guard, numerous vendors in Bengaluru and beyond, including tea stalls, bakeries, and market shops, have displayed “No UPI” signs, fearing tax liabilities that could amount to lakhs or crores. Trader associations have announced a statewide bandh on July 25, 2025, protesting what they describe as excessive and arbitrary tax demands.
One trader, Shankargouda Hadimani, a vegetable seller from Haveri, expressed his shock upon receiving a notice demanding Rs 29 lakh in GST after officials calculated his UPI transactions over four years at Rs 1.63 crore. Shankargouda, who exclusively sells fresh vegetables exempt from GST, stated that he files his taxes regularly and is now uncertain about how to manage such a substantial sum.
As tensions rise, the outcome of the Chief Minister’s meeting and the traders’ response will be crucial in determining the future of small vendors in Karnataka.
**FAQ**
**What prompted the protest by bakeries and condiment stores in Karnataka?**
The protest was prompted by tax notices issued by the Commercial Tax Department to small-scale vendors, which traders claim are unfair and excessive.
