The Karnataka State Association of Bakeries, Condiments and Small Enterprises has organised a protest rally at Freedom Park on Thursday, to protest the “unscientific” Goods and Services Tax (GST) notices issued by the Commercial Taxes Department to small-scale traders. 

D.B. Pratap Shetty, president of the association, expressed concern over the GST notices to small-scale businesses like condiments stores, bakeries, milk sellers, vegetable vendors, and others, and said these notices had created a sense of fear among traders.

These notices have been issued based on transactions in their UPI payment gateway linked accounts.

“Most of our transactions — over 95% — are through digital payments,” Mr. Shetty said, and warned that if their issues are not sorted out, they will launch a State-wide protest against the UPI payment system. “We will begin a campaign to break UPI scanners as a mark of protest,” he warned.

He alleged that traders with annual transactions between ₹20 lakh and ₹40 lakh are being served notices, which goes against the standard GST norms.

While demanding the withdrawal of such notices, the association has demanded that the government allow traders with turnover exceeding ₹40 lakh per year to settle their dues under the presumptive tax scheme by paying a flat 1% tax based on available records.