Karnataka statewide bandh on July 25: What’s open and what’s close

Karnataka statewide bandh: Small traders across the state, including bakeries, tea shops, condiment stores, and various petty stalls, are planning a statewide “bandh” (shutdown) to protest against Goods and Services Tax (GST) demand notices issued by the Commercial Tax Department. Karnataka statewide bandh on July 25: What’s open and what’s close.

The protest is primarily against GST demand notices issued to businesses with an annual UPI (Unified Payments Interface) turnover exceeding Rs 40 lakh. Traders argue that these notices are based on digital payment data that doesn’t accurately reflect their taxable income, often including exempt goods (like milk) or personal transactions.

Many claim the demands are excessive and threaten their livelihoods. Number of Businesses Affected: Over 11,000 notices have reportedly been issued, and around 65,000 establishments are expected to participate in the shutdown.

Phased Protest: As a precursor to the full bandh on July 25, traders have announced a phased protest:

July 23 & 24: Suspension of milk and milk product sales.

July 24: Halting of gutka and cigarette sales.

July 25: Full closure of bakeries, condiment shops, and petty stores.

Traders are demanding the withdrawal of these tax notices. They also question the legality of how their UPI transaction data was shared with the tax department. The strike is expected to affect markets, retail outlets, and grocery stores in several districts across Karnataka, including Bengaluru.

One unintended consequence is that many small traders are now reportedly refusing UPI or QR payments, fearing retrospective tax scrutiny. This could hinder the progress of India’s cashless economy push.

The Commercial Tax Department maintains that issuing the notices is lawful and aims to ensure fairness to regular taxpayers. They state that notices are only sent to those exceeding the Rs 40 lakh turnover threshold and that businesses dealing in exempt goods or under the composition scheme can clarify with evidence.

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Likely CLOSED / NOT ALLOWED:

Bakeries: This is a major group participating in the strike.

Condiment Shops: Stores selling spices, pickles, etc., are expected to be closed.

Petty Stores/Roadside Shops: Small general stores, kiosks, and street vendors are a core part of the protesting group.

Tea Stalls and Cafes (small, independent ones): Many of these are run by small traders who are part of the protest.

General Kirana/Grocery Stores (small to medium-sized): While not all may participate, many smaller grocery stores could join the shutdown.

Sales of Milk and Milk Products: As a phased protest, milk sales were to be suspended on July 23 & 24, leading up to the full strike. It’s highly likely this suspension will continue on July 25 for participating merchants.

Sales of Gutka and Cigarettes: Similar to milk, the sale of these items was to be halted on July 24 as part of the phased protest and will likely remain suspended by protesting merchants on July 25.

UPI/Digital Payments: Many small traders have already started refusing UPI and QR payments in fear of further tax scrutiny, and this trend is expected to continue or even intensify on the day of the strike. Expect many small shops to be cash-only if they decide to operate.

Likely OPEN / ALLOWED:

Large Retail Chains & Supermarkets: Big grocery stores, malls, and established retail chains are generally not part of these small trader protests and are expected to operate as usual.

Pharmacies/Medical Shops: Essential services like pharmacies typically remain open during such protests.

Hospitals and Medical Facilities: These are critical services and will be fully operational.

Public Transport: While there have been separate transport-related discussions, the government has invoked ESMA (Essential Services Maintenance Act) to prohibit strikes by employees of state road transport corporations until December 31, 2025. Therefore, BMTC (Bengaluru Metropolitan Transport Corporation) and KSRTC (Karnataka State Road Transport Corporation) buses are expected to operate. However, local auto-rickshaws or private taxis might see some impact if drivers choose to show solidarity, but there is no official call for a transport strike on July 25 specifically from their unions related to this merchant protest.

Restaurants and Hotels (larger establishments): While small tea stalls might close, larger restaurants and hotels are generally not involved in this specific small traders’ strike.

Banks and ATMs: Financial services are unlikely to be affected by this merchant strike.

Government Offices: Government services will function normally.

Emergency Services: Police, fire, ambulance, etc., will be fully operational.

Important Note: The extent of the strike’s impact can vary by locality. While widespread participation is expected among small traders, there might be some isolated shops that choose to remain open. It’s always advisable to check locally.