New Delhi, Mar 23 (KNN) With the news report surfacing about the arrest of a GST officer asking bribe in tax matters, the Micro, Small and Medium Enterprises (MSMEs) have expressed that the case exhibits how inspector raj is slowly getting reinstated even under the Goods and Services tax regime.

Earlier this week, Pune State Anti-Corruption Bureau (ACB) arrested a class-I officer of GST department for allegedly asking Rs 30,000 bribe.

The officer demanded the bride for not taking action against a contractor in a case of payment of a lesser value added tax for works executed in 2013, following which he was tracked down and arrested.

Talking to KNN, Sunil Vaish, President of MSME body Indian Industries Association (IIA) said that the situation when it comes to actual reality, despite claims, the new tax regime is far from brining in ‘ease’.

Talking about Uttar Pradesh, Vaish said that abnormal raids are becoming the new normal under the One Nation One Tax regime.

Vaish said that industry welcomed the new taxation since it was expected to take things online bringing transparency and projected ease in doing business, but it is still not happening.

“The inspector raj is getting reinstated with the tax officers spreading a wave of fear, sending across a very negative message”, Vaish said.

He further informed that in most of the cases, the units are honest and are not doing anything wrong, yet it has to fear the inspector and the raid.

Also with report surfacing about the arrest of the GST officer, it indicates how corruption is sweeping back into the system.

On one hand the refunds are still stuck hammering the working capital and on other hand there are these raids, making it impossible for the industry to function, Vaish lamented.  (KNN/DA)