Karnataka Traders Call Off Strike After GST Notice Withdrawal Assurance

Small-scale traders and vendors across Karnataka have decided to end their protest over the GST notices issued for UPI transactions exceeding ₹40 lakh annually, as per The New Indian Express report. The strike was called off after the Commercial Taxes Department assured that the notices would be withdrawn and tax arrears not pursued, fulfilling major trader demands.

Protest Ends After Department Responds to Tax Grievances

Traders launched a statewide protest objecting to sudden GST notices linked to high-value UPI transactions. These notices targeted individuals exceeding ₹40 lakh in yearly turnover but were unaware of registration needs. Bakery and condiment vendors boycotted the sale of milk, curd and other essentials to draw government attention. Following talks, the Commercial Taxes Department promised to cancel existing notices, assuring businesses that no tax arrears would be sought.

Black Bands and Silent Resistance

Thousands of small vendors expressed dissent by wearing black bands and ribbons. A one-day bandh was also planned before the government's timely intervention. The Karnataka Karmika Parishat leader confirmed that the community received clear instructions that GST replies were unnecessary and that dues would be waived.

Read More: Why Vendors are Getting GST Notices for UPI Transactions Crossing ₹40 Lakh!

Support from Traders' Bodies and the Government’s Role

The FKCCI appreciated the Chief Minister’s involvement in resolving tensions and safeguarding the interests of small business owners. FKCCI stated that proactive assurance has rebuilt faith between the administration and the trader community. They also announced further initiatives, including GST registration support drives to simplify compliance requirements.

Next Steps and Compliance Measures

Going forward, the Commercial Taxes Department will organise awareness campaigns, helping traders understand compliance obligations. Business owners earning above ₹40 lakh yearly are encouraged to register under the GST laws. Stakeholders hope these actions will prevent future misunderstandings and foster transparent financial practices.

Conclusion

The Karnataka traders' protest over GST-linked UPI notices concluded peacefully after swift assurance from tax authorities. Resolution of this issue with the withdrawal of notices and waiver of pending dues sets a precedent for meaningful government dialogue in trade matters, supporting grassroots commerce and financial inclusion.

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