Small Business Owners to Protest “Crippling” GST Notices in Bengaluru
Vendors Demand Waiver of Past Dues, Say Arbitrary Tax Demands Threaten Livelihoods
“4 ವರ್ಷದ ಹಿಂದಿನ ತೆರಿಗೆ ಬಿಲ್ಲು: ಲಕ್ಷಾಂತರ ವ್ಯಾಪಾರಿಗಳ ಕಷ್ಟದ ಕೂಗು!”
Bengaluru, July 22, 2025: Hundreds of small business owners, bakery operators, and street vendors will gather at Freedom Park on July 24 to protest what they call “unfair and devastating” GST notices issued by the Commercial Taxes Department. The notices, demanding backdated taxes from the past four years, have left many entrepreneurs in financial distress, with some facing dues ranging from ₹40 lakh to over ₹3 crore—amounts they say are impossible to pay.
The Karnataka State Bakery, Condiments and Small Business Owners Association, organizing the protest, alleges that the government failed to educate small businesses about GST compliance, only to suddenly impose massive penalties years later. Many vendors, still recovering from pandemic losses and inflation, now fear being forced to shut down their shops permanently.
“A Shock, Not a Notice”: Vendors Decry Lack of Awareness
Advocate Shakuntala Shetty, legal counsel for the association, minced no words in criticizing the government’s approach.
“Issuing GST notices after nearly four years, without annual reminders or proper awareness campaigns, is a complete failure on the part of the government,” she said. “Now, when small vendors are on the streets protesting, the department suddenly starts conducting workshops. This drama after the damage is unacceptable.”
She revealed that many vendors have stopped using UPI payments out of fear of being tracked and penalized further, severely impacting their daily transactions.
“These notices demand unimaginable amounts, leaving vendors mentally shattered. Many are now staring at the possibility of closing their businesses. This isn’t compliance—it’s harassment,” she added.
Key Demand: Waiver of GST Dues Up to 2024
The association is urging both the Central and State governments to waive all GST dues from the past four years, arguing that small businesses were never properly informed about their tax obligations. They emphasize that most vendors are now willing to comply with GST regulations from 2025 onwards.
Pratap Shetty, President of the Association, expressed frustration over the government’s silence despite repeated appeals.
“We are left with no option but to protest. Our memorandums have been ignored. If the government continues to turn a blind eye, we will have no choice but to approach the courts,” he said.
He pointed to favorable rulings by the Bombay and Kerala High Courts, which held that small businesses under the composite tax system cannot be burdened with retrospective GST demands.
“The department is suddenly holding awareness workshops because we are protesting. Why wasn’t this done four years ago? What’s the point now, after pushing people to the brink?” he questioned.
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CM Siddaramaiah Responds, Shifts Focus to Centre
Chief Minister Siddaramaiah acknowledged the grievances but noted that the GST Council falls under the Central Government’s jurisdiction.
“The State government will raise the issue with the Centre and hold discussions with the Commercial Taxes Department before making a decision,” he said.
Growing Anger: Protest Expected to Draw Large Crowds
With emotions running high, the protest at Freedom Park is likely to see a massive turnout from small business owners across Karnataka. The association has warned of further agitation, including legal action, if their demands are not met.
The controversy highlights the fragile state of small businesses, many of which are still struggling to recover from pandemic losses and rising costs. For countless vendors, the sudden demand for backdated taxes may be the final blow to their survival.
“We just want to earn a livelihood,” said a bakery owner who received a ₹1.2 crore notice. “If the government doesn’t listen, what other option do we have but to fight?”
As the protest looms, all eyes are on whether authorities will offer relief or risk pushing thousands of small entrepreneurs deeper into despair.
“First Pandemic, Now This”: Vendors Describe Panic, Suicidal Thoughts
> At a tea stall in KR Market, 45-year-old Ramesh Patel stared blankly at his ₹2.3 crore GST notice. “I sell idlis for ₹10 each,” he said, wiping tears. “Do they want my blood instead?”
What Happens Next?
The association vows escalating protests unless the government:
✅ Waives all pre-2025 GST dues for small businesses
✅ Suspends recovery proceedings immediately
✅ Punishes officers for “deliberate harassment”
As Freedom Park braces for thousands on Thursday, one question hangs heavy: Will Delhi and Bengaluru listen before another entrepreneur takes their life?
“We’re not criminals,” said Shetty, holding up a noose at the press conference. “But they’re leaving us no choice.”