Karnataka Bandh 2025: What’s Open and Closed Tomorrow on July 25?

As per news reports, Karnataka is set to witness a major bandh on July 25, 2025, as thousands of small traders, including bakery owners, tea and coffee stall vendors, petty shopkeepers, and micro-businesses, plan a statewide shutdown.

The bandh is in protest against GST demand notices issued by the Karnataka Commercial Taxes Department, which have sparked outrage across the state.

Why Are Traders Protesting?

The controversy stems from the retrospective GST tax notices served to small traders after the government analysed UPI and digital payment records. Authorities claim many vendors crossed the GST registration threshold of ₹40 lakh for goods and ₹20 lakh for services during FY 2021-22 and subsequent years.

Traders argue that these notices are unfair, as many were encouraged to adopt digital payments under the Digital India campaign but are now being penalised.

They also highlight that personal and family transfers often mix with business payments, inflating the figures. Fear of legal action, heavy penalties, and even losing their businesses has fueled widespread anger.

What Will Remain Open or Closed?

The bandh will primarily affect:

• Small kirana stores, bakeries, petty shops and condiment stalls
• Tea, coffee stalls, and tobacco vendors
• UPI payment facilities at small outlets

However, large supermarkets, retail chains, malls, hospitals, clinics, and pharmacies will remain open. Public transport will continue to operate, but disruptions in milk, dairy products, and tobacco sales are expected in major cities like Bengaluru. Peaceful rallies, particularly at Freedom Park, are also planned.

Digital Payments Backlash

The protest highlights growing distrust in digital payments among small businesses. Many traders are now removing QR codes and adopting “Cash Only” policies, citing fear of data being used to levy back taxes and penalties. This backlash strikes at the heart of India’s cashless economy push, which gained momentum post-COVID and during demonetization in 2016.

Are Banks Open on July 25 in Karnataka?

During the Karnataka bandh on July 25, 2025, banks are expected to remain open and operate as usual, as the protest is primarily focused on small traders, vendors, and micro-businesses. While banking services such as ATMs, online transactions, and branch operations will function normally, some areas could see reduced accessibility due to roadblocks or local disruptions, especially in parts of Bengaluru where rallies are planned.

Also Read: RBI Releases List of Bank Holidays for July 2025 – Check Full Schedule!

Conclusion

The Karnataka bandh reflects the frustration of small traders who feel trapped between government initiatives promoting cashless transactions and retrospective tax enforcement. The state government is yet to respond to the issue.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.