Bengaluru Bandh on July 25: Small Traders Protest GST Notices
Bengaluru is bracing for a partial shutdown on July 25, as thousands of small-scale traders, including bakeries, condiment shops, and petty vendors, plan to go on strike. The protest stems from GST (Goods and Services Tax) notices issued by the Karnataka Commercial Taxes Department, targeting businesses with UPI (United Payments Interface) transactions exceeding ₹40 lakh.
The notices, which have been issued to over 10,000 traders in the city, have caused widespread anxiety and concern among the small-scale traders. Many of these traders, who are already struggling to stay afloat, fear that the notices will lead to a significant increase in their tax liability, putting their businesses at risk.
The strike, which has been called by the Federation of Karnataka Traders and Small Scale Industries, is expected to affect various sectors of the economy, including food, beverages, and consumer goods. Thousands of small-scale traders, who are the backbone of the city’s economy, are expected to participate in the strike, bringing a significant part of the city to a standstill.
The notices were issued by the Karnataka Commercial Taxes Department under Section 107 of the GST Act, which requires businesses with UPI transactions exceeding ₹40 lakh to obtain a unique permanent account number (PAN) and furnish their details to the department. However, many small-scale traders have been unable to comply with these requirements, leading to the issuance of notices.
The Federation of Karnataka Traders and Small Scale Industries has accused the government of targeting small-scale traders unfairly, and has demanded that the notices be withdrawn. The federation has also demanded that the government provide relief to small-scale traders, including a reduction in tax rates and relaxation of compliance requirements.
The strike is likely to have a significant impact on the city’s economy, as small-scale traders play a crucial role in the city’s food and beverages sector. Many bakers, sweet shops, and condiment shops are expected to shut down, leaving consumers without access to their favorite products. The strike is also expected to affect the city’s transportation sector, as many small-scale traders rely on public transport to deliver goods to their customers.
The government has so far refused to budge, despite the federation’s demands. In a statement, the Karnataka Commercial Taxes Department said that it was committed to ensuring that all businesses, including small-scale traders, comply with GST requirements. The department has also warned that failure to comply with the notices could result in severe penalties, including fines and imprisonment.
The strike is likely to be a major test for the state government, which has been struggling to balance its budget and address the concerns of small-scale traders. The government has been under pressure to provide relief to small-scale traders, who have been complaining about the high cost of compliance with GST requirements.
In the meantime, small-scale traders are bracing for the worst, as they prepare to go on strike. Many have stockpiled goods, anticipating a shortage of essential items. Others have decided to shut down their businesses, fearing that the notices could result in significant financial losses.
As the city prepares for the strike, there is growing concern about the impact it could have on the economy. The strike is likely to disrupt the supply chain, leading to a shortage of essential items. It could also lead to a loss of revenue for the government, as small-scale traders are forced to shut down their businesses.
In conclusion, the Bengaluru bandh on July 25 is a major development that could have significant implications for the city’s economy. The strike is a response to GST notices issued by the Karnataka Commercial Taxes Department, which have caused widespread anxiety and concern among small-scale traders. As the city prepares for the strike, there is growing concern about the impact it could have on the economy. The government must act quickly to address the concerns of small-scale traders and provide relief to those affected by the notices.
