The core of the protest stems from allegations that small-scale vendors are being unfairly targeted with substantial GST demands, some ranging from ₹40 lakh to over ₹2 crore, for tax arrears dating back to 2020-21. These notices, often based on digital transaction data from Unified Payments Interface (UPI) platforms, have triggered widespread panic and fear of business closures among thousands of small traders in Karnataka. Despite milk and curd being exempt from GST, many vendors have received notices related to overall turnover thresholds.

Shop owners are expressing their discontent through various symbolic actions, including wearing black badges and putting up “No Tea, No Coffee – Only Lemon Tea and Black Tea Available” signs. While the protest primarily impacts beverage counters, the broader message is clear: small traders feel disproportionately affected by the tax enforcement. Some vendors have even ceased accepting UPI payments, reverting to cash-only transactions, to avoid further digital transaction-based scrutiny.

The protest is planned to escalate, with many shops suspending milk sales for three days and various trader associations announcing a statewide bandh (strike) for Friday, July 25, at Freedom Park in Bengaluru. This collective action aims to pressure the government to withdraw the contentious notices and revise tax demands to reflect the ground realities faced by small businesses. The Karnataka Milk Federation (Nandini) booths, however, continue to sell milk, acting as an alternative source during this disruption.