Punjab Small Industries allege harassment by State GST department

Ludhiana, Mar 19 (KNN) Federation of Punjab Small Industry Association (FOPSIA) has alleged that the State Goods and Services Tax (SGST) department is harassing the trade & industries for their vested interests.

In a letter to Punjab Chief Minister Captain's Amrender Singh, the federation said, ''the support of trade & industry was one of the main sources behind the success of your government in the state assembly elections of 2017. But very sadly we have to inform you that under your leadership the State Goods & Service Tax department (Excise & Taxation) are badly harassing the trade & industries for their vested interests. Shockingly the department of SGST is under your own ministry but we are sure that this act of department must not be in your consideration.''

The SGST department fully failed to perform their duty which resulted in to bogus billing scams of billions of rupees in the state, our organization is fighting for this since September 2017 but department never came forward to check the evasions and now after three years the department is just taking some action just to save their skin and still the high evasion is on in the state, it added.

FOPSIA further said that the department last year issued more than 70000 notices for scrutiny assessment of year 2013 which was almost after seven year of closure of the year and after three year of implementation of GST.

''For this year the then government under Sukhbir Badal have already notified in 2014 that there will be no assessment of any assessee below 1 crore but forcefully the department issued notices to around 69000 assesses that were below 1 crore in Punjab,'' it said.

The industry which was already struggling during COVID was forced to fulfill the demands of the officers. The department tried to give the message to the Industries that your government is fully Anti industry Government, FOPSIA said.

The Punjab State Development Tax Act was introduced in the year 2018, just after the implementation of GST system in the country, the trade and Industry protested strongly against this act as this was a major additional burden on the Industry. Due to the strong resentment of trade and industry its process was slowed down by the government.  But shockingly just before few months of the state assembly elections and on the day when the government was celebrating its fourth year of success the department issued thousands of show cause notices under section 6 to the traders and industries for recovery of Punjab State Development Tax of the last three years.

''For the last three years the department never bothered to send any single letter to any industry or trade about this act and shockingly all of sudden issuance of bulk notices is a conspiracy to sabotage the image of the government in the trade and industry of state,'' the letter read.

In its letter, FOPSIA also informed Capt Singh that despite passing through crucial times due to COVID and other locational disadvantages, trade & Industry in Punjab is the only sector which is providing employment to the 5 million workers of the state.

''The latest report of Niti Aayog too said that Punjab Per Capita Income is below than National Per Capita Income. Moreover at times when industry is struggling and state elections are round the corner, such notices may prove to be a big nightmare for repeating attempts of industries' favourite government,'' the letter read further.

''We ardently hope that our request would get your kind consideration and would be treated accordingly,'' FOPSIA said.