Leading industry and trade associations representing the medium, small and micro enterprises (MSMEs) in the district on Saturday petitioned chief minister M K Stalin against what they termed as harassment by state GST authorities by way of frequent roving squad checks, overlapping audits and penalties for minor clerical errors.
In a representation to Stalin, more than 40 associations – including the Coimbatore District Small Industries Association, district chapter of Indian Chamber of Commerce and Industry, Southern India Engineering Manufacturers’ Association, South India Mills Association and several micro and small-scale industrial bodies – highlighted that these enforcement practices were disrupting businesses and crippling cash flow.
The associations alleged that the GST squads were often detaining vehicles even after the submission of valid invoices or e-invoices and imposing huge penalties even for typographical errors. “This goes against Section 126 of the CGST Act, which protects businesses from disproportionate penalties for minor lapses without fraudulent intent,” the representation stated, citing the Supreme Court and high court rulings.
They said the state GST offices were not issuing sealed acknowledgements for hearings or submissions, leaving dealers without proof of compliance. Overlapping audits and inspections for the same assessment years were described in the representation as a wasteful duplication that only adds to harassment.
Among other grievances raised were misuse of Section 74 provisions meant for cases of fraud, denial of input tax credit to buyers despite genuine tax payments and inordinate delay in disposing of first appeals. The associations demanded a statutory timeline for appeal disposal and automatic stay on recovery proceedings until final orders were passed.
The associations also urged the govt to ensure that inspections are intelligence-driven and risk-based in line with the Central Board of Indirect Taxes & Customs (CBIC) guidelines, and not random. “The present enforcement practices are eroding business confidence and run contrary to the state’s ease of doing business goals,” the petition read.
They also sought the CM’s intervention to direct the GST department to align enforcement with statutory safeguards, judicial pronouncements and CBIC circulars to restore a fair environment for MSMEs to operate.
Source #TOI
