Micro, Small and Medium Enterprises (MSMEs) should resemble the Punjab Chief Minister Captain Amarinder Singh about the illegal GST assessment notices granted by the State Goods and Services Tax (SGST) Get the brief introduction of SGST, IGST and CGST. We have mentioned their full forms, meanings and adjustments of input tax credit under GST in India council.
Badish Jindal the president of All India Trade Forum AITF wrote to Captain Singh stating “recently the department of the SGST issued notices to 54,769 entrepreneurs for the assessment of their VAT cases for the year 2013-14. In these cases, 23,277 notices issued by the Ludhiana office of the SGST (11309 District I, 5967 District II & 6001 District III), 14,208 notices issued in Jalandhar, and 6,249 notices for assessment are issued by the Amritsar SGST office. Besides, two notices of 14,383 and 14,333 cases are separately issued by the department for the assessment of VAT cases.”
3 years have gone since the abolition of VAT in the states and this declaration is from the year 2013-14 that is about 7 years older. However, No logic can be deducted from this notice.
He added the sum of Value Added Tax (VAT) taxpayers in the states was nearly 1,30,000 thus the officials gave the notices to more than 60% of the total taxpayers in the state. The selection of cases is not fixed as it looks that the only motive behind the examination is the absolute interest of the officials.
“The department has fully failed to prevent the state from bogus transactions even with the online return filing systems under VAT and at that time the invoices were also online, which were called E-Trips. Now it is feared that after seven years, the department may harass the innocent assesses in the name of assessments,”
For providing the privilege of the investigation of the companies whose turnover is less than Rs 1 cr, the excise and taxation minister on January 31, 2015, has given an order for the same. The motive was to overcome the big proprietor from despoiling the industry along with corruption to VAT officials. The investigation, reveals that 90% of the cases are below Rs 1 crore.
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“It may prove to be more harassment to the small assesses than to bring the revenue to the exchequer,”
Jindal certainly summoned the department for scaring taxpayers for the fourth stage confirmation, in which post 7 years, that how taxpayers prove to verify their customers.
“Such acts are against the ease of doing a business model of the state and might impact the “Invest Punjab initiative” of the state government. It is requested that the department should be ordered to quash all cases fixed for assessment and only the doubtful cases should be selected for assessment,”