Small Businesses and Bakeries Protest GST Notices on July 24

Quick Summary:

• The Karnataka State Association of Bakeries, Condiments, and small Enterprises organized a protest rally at Freedom Park on Thursday.
• The rally was against “unscientific” GST notices issued by the Commercial Taxes Department to small-scale traders, including bakeries, vegetable vendors, milk sellers, and condiments stores.
• These GST notices are reportedly based on transactions in UPI-linked accounts.
• D.B. Pratap Shetty, president of the association, stated that over 95% of their transactions occur via digital payments and expressed concerns that this system is fostering fear among traders.
• He further alleged that traders with annual transactions between ₹20 lakh and ₹40 lakh are being targeted in violation of standard GST norms.
• The association warned they woudl start a statewide campaign against the UPI payment system if their grievances were not addressed-potentially involving symbolic actions such as breaking UPI scanners in protest.
• Demands include withdrawing these notices and allowing businesses with more than ₹40 lakh annual turnover to pay under a presumptive tax scheme at 1% based on available records.

Indian Opinion Analysis:
The protest highlights growing tension between small-scale businesses reliant on digital payments and taxation authorities seeking compliance under existing GST norms. While promoting digital transactions has long been a government priority for openness, concerns raised by business owners about procedural discrepancies need careful examination to maintain trader confidence in fiscal systems like UPI.

Targeting businesses below prescribed turnover limits could deter smaller enterprises from transitioning fully to formalized finance channels-a reversal of years-long efforts toward economic digitization post-demonetization in India. Constructive dialog between stakeholders might prevent broad disruption while ensuring policy execution respects industry constraints without eroding trust or productivity.

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