The statewide Karnataka bandh initially planned for July 25, 2025, was officially called off after Chief Minister Siddaramaiah held discussions with representatives of small traders. The bandh was proposed in protest against GST notices issued to traders but has now been withdrawn, ensuring normalcy across the state.
On July 24, Karnataka CM Siddaramaiah met with representatives of trader associations and addressed their concerns regarding GST notices. The government clarified that the notices were issued only to those whose UPI transactions exceeded ₹40 lakh, requiring mandatory GST registration. As per news reports, no retrospective tax recovery will be initiated if traders register going forward. Additionally, sellers of tax-exempt goods like milk, vegetables, fruits, and meat were assured they would not face penalties.
With the bandh now cancelled, daily life in Karnataka is continuing without disruption on July 25. Banks, educational institutions, markets, and transport systems are functioning as usual. Public buses, autos, metro rail, and essential services, including hospitals, are operating smoothly across major cities like Bengaluru, Mysuru, and Hubballi.
Read More: Why Vendors are Getting GST Notices for UPI Transactions Crossing ₹40 Lakh!
The bandh was originally called in response to GST demand notices sent to over 14,000 small traders. These notices were based on UPI payment data showing turnovers above ₹40 lakh for goods and ₹20 lakh for services. Many traders had briefly stopped digital transactions, and some even halted milk and dairy sales. The state government has since pledged better support through workshops and a dedicated helpline (1800 425 6300) to guide businesses on compliance norms.
The cancellation of the Karnataka bandh has helped restore public confidence and ensured uninterrupted access to essential services. With the state government stepping in to clarify GST rules and offer assistance, small traders are expected to find more clarity and support for digital and tax compliance going forward.
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Published on: Jul 25, 2025, 12:32 PM IST
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