Why Are Small Traders in Karnataka Protesting Against GST?
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Synopsis
In an escalating confrontation between the ruling Congress and opposition BJP, small traders in Karnataka have launched a three-day protest against GST notices demanding hefty tax payments. With shops closing and boycotts in place, this agitation raises questions about the government's approach to small businesses. What does this mean for the future of trade in the state?
Key Takeaways
- Traders have initiated a three-day protest.
- Boycotts of certain products are taking place.
- Concerns about excessive GST demands are central to the agitation.
- The state government is urged to engage with affected small traders.
- Indefinite strike is being considered if demands are unmet.
Bengaluru, July 23 (NationPress) In the midst of a political standoff between the ruling Congress party and the opposition BJP regarding the GST notices sent to small traders and shop owners demanding excessively high tax payments, merchants across Karnataka have initiated a three-day protest beginning Wednesday.
As part of their demonstration, traders have ceased serving milk, coffee, and tea to their patrons, many of whom donned black badges.
On Thursday (July 24), they have opted to boycott the sale of cigarettes, beedis, and all tobacco-related items. On Friday (July 25), traders intend to close their shops and businesses, culminating in a significant protest at Freedom Park in Bengaluru.
They are also contemplating an indefinite strike unless the GST notices are revoked.
In the meantime, Chief Minister Siddaramaiah has convened a meeting with affected parties and trade organizations at his official residence in Bengaluru. However, Karnataka State Karmika Parishat President Ravi Shetty responded to CM Siddaramaiah's outreach by stating that his organization would not participate in the meeting.
“We commenced this agitation against the GST notices targeting traders. Yet, the state government has invited only those trade bodies already complying with tax regulations. The meeting should have included small traders facing GST notices demanding payments of up to Rs 50 lakh. Our organization feels the invitation was merely a formality. We will not attend,” stated Ravi Shetty.
Union Minister for Food, Public Distribution, and Consumer Affairs Pralhad Joshi has clarified that the GST notices issued to small-scale traders in Karnataka originate from the state government, not the Central government.
The Karnataka BJP has criticized the Congress-led government for the alleged issuance of GST tax notices to small traders, accusing it of hindering the Centre's digital advancements. The party has also launched a helpline to protect the interests of small traders amid the GST controversy.
In response, Karnataka Deputy Chief Minister and State Congress President D.K. Shivakumar accused the BJP of trying to blame the Congress government for the GST issue.
“The BJP is attempting to benefit from the situation while placing the blame on us by issuing GST notices to small traders,” said the Deputy Chief Minister, targeting the opposition BJP in the state.
Point of View
It reflects broader concerns regarding the treatment of small traders across India. The GST notices have sparked significant unrest, highlighting the need for dialogue between the government and the business community. It is crucial to address the grievances of small traders to foster a more supportive environment for local businesses.
NationPress
23/07/2025
Frequently Asked Questions
What sparked the agitation among small traders in Karnataka?
The agitation was triggered by GST notices issued to small traders demanding excessive tax payments, leading to widespread protests.
What actions have traders taken during the protest?
Traders have stopped selling certain products like milk and coffee and plan to boycott tobacco sales and close their shops.
What is the government's response to the protests?
Chief Minister Siddaramaiah has called for a meeting with trade bodies, but some organizations have declined to participate.
Is this issue related to the central government?
Union Minister Pralhad Joshi clarified that the GST notices are under the purview of the state government.
What are the potential outcomes of this agitation?
If the GST notices are not revoked, traders are considering an indefinite strike, which could significantly impact local businesses.
