Bakeries Stop Selling Tea, Coffee In Karnataka To Protest Against GST Notices

The unrest stems from tax notices issued to vendors whose digital transactions via UPI and other platforms exceeded Rs 20 lakh.

Only black tea is available as a mark of protest.

Source : ABPLIVE AI

Karnataka News: Small traders across Karnataka, including bakeries and condiment stores, halted the sale of tea, coffee, and milk on Wednesday in a symbolic protest against GST notices issued by the Commercial Tax Department. The vendors accused authorities of unfairly targeting small businesses based on digital transactions.

Labour activist Ravi Shetty, speaking from a protest site, said, "We are wearing black bands today. No bakery is selling milk. Only black tea is available as a mark of protest."

Beverage Counters Shut In Karnataka

While beverage counters were shut, other commercial activity continued. Several outlets served only black tea or coffee to show dissent against what traders call arbitrary tax enforcement.

The unrest stems from tax notices issued to vendors whose digital transactions via UPI and other platforms exceeded Rs 20 lakh (for services) or Rs 40 lakh (for goods) between FY 2021–22 and FY 2024–25. Officials clarified that tax liability is determined by total turnover, regardless of whether payments were made via cash or UPI.

Caught off guard, many small businesses have now switched to "cash-only" operations and displayed "No UPI" signs.

CM Siddaramaiah Calls Meeting Today

In response to the protests, Chief Minister Siddaramaiah has called a meeting at 3 PM today with representatives of small traders. Meanwhile, trader associations have threatened a statewide bandh on July 25 if the notices are not withdrawn.

One trader, Shankargouda Hadimani, a vegetable seller from Haveri, said he received a Rs 29 lakh notice despite dealing only in tax-exempt fresh produce. "I don't know how I'm supposed to pay this," he said.