Karnataka Bakeries Halt Tea, Coffee Sales & Display ‘No UPI Signs’; Here’s Why

In a recent development, several bakeries and condiment shops across Karnataka have now suspended the sale of tea, coffee, and milk on Wednesday. This move came as a form of protest by small-scale vendors against the Goods and Services Tax (GST) notices issued by the Commercial Tax Department to small-scale vendors.

Bakery Owners Stage Symbolic Protest In Karnataka Over GST

Small-scale vendors across Karnataka are now actively engaged in a symbolic protest against GST notices issued by the Commercial Tax Department. As per a report by India Today, these vendors stopped the sale of tea, coffee, and milk on Wednesday. They also wore black badges and accused the department of targeting them unfairly. 

Reportedly, Ravi Shetty, a labour activist present at one of the protest sites, stated to India Today, that no bakery will sell milk. Only black tea and black coffee will be served as a mark of protest. Moreover, the protest primarily focused on the beverage counters in these bakeries and condiment shops, while all other commercial activities continued as usual.

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Vendors Hit By GST Crackdown Over UPI Payments

As per a report by India Today, vendors alleged that the department is unnecessarily targeting small traders through a digital transaction-based crackdown. Reportedly, the action was based on data collected from UPI and other digital payment platforms between FY 2021-22 and FY 2024-25. Furthermore, notices were sent to traders whose digital receipts crossed ₹20 lakh for services and ₹40 lakh for goods.

Officials further clarified that they will consider the total turnover, including cash, regardless of whether the payment was made through UPI or cash. In response, many vendors have now started accepting only cash payments. They have also displayed “No UPI” signs to avoid falling into unexpected tax liabilities of lakhs or crores.

Several trader associations have also announced a statewide bandh on July 25 to oppose these excessive tax demands. Shankargouda Hadimaji, a small-scale vegetable vendor from Haveri, reportedly received a GST demand notice of ₹29 lakh. Officials calculated his UPI transactions over four years to be ₹1.63 crore. As per the same report, Shankargouda only sells fresh vegetables. He stated that he has no idea how he will manage to pay such a huge amount.

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In response to the protest, CM Siddaramaiah also called a meeting at his residence. He met with representatives of the small-scale trader community to discuss the issue. 

Cover Image Courtesy: Canva Pro/  Philippe F. (Representative Image)