Bengaluru, July 24: The Karnataka government, headed by Chief Minister Siddaramaiah, has decided not to pursue GST notices issued to traders and street venodrs over UPI transactions. Subsequently, associations of traders and vendors on Wednesday, July 23, called off all their planned protests including statewide shutdown or Karnataka Bandh. After meeting with representatives of trade unions, Siddaramaiah said that old tax dues of the small traders who got the notices would be waived.

Nearly 18,000 GST notices were issued to traders and vendors across the state in the past two to three years. In protest, the affected traders and vendors had announced to boycott UPI payments and started removing QR codes from their shops and establishments. A statewide strike (Karnataka Bandh) was also called on July 25 as part of the protests. Following a meeting, Siddaramaiah said GST notices were sent only to traders whose UPI transactions exceeded a total value of Rs 40 lakh in the last two to three years. Bengaluru: Small Street Vendors Seek GST Relaxation After Receiving Notices for UPI Transactions Crossing 40 Lakh Turnover.

Karnataka CM Siddaramaiah on GST Notices Issued to Traders

Karnataka CM Siddaramaiah Holds Meeting With Representatives of Trade Unions

"Even though notices were sent to traders selling these exempt items, no tax will be taken from them. Also, the government will not try to collect old tax dues from the last two to three years," the Chief Minister said at a press conference. Bengaluru: Adamant on UPI Payment, Man Refuses to Pay in Cash After Auto Ride; Netizens Call Him Out for 'Defrauding' Driver.

A statement from the CM's office said trade representatives complained that many GST notices included not just business transactions but also personal money transfers and loan disbursals done through the UPI, which caused confusion.

(The above story first appeared on LatestLY on Jul 24, 2025 02:12 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).