Madurai, Jan 19 (KNN) The Agrofood Chamber of Commerce and Industry has urged the Tamil Nadu government to withdraw the recent amendments to the GST Circular issued by the Commercial Taxes Department on January 10 this year.

President of the chamber S Rethinavelu, in a release expressed strong opposition to the amendments that directed the roving squad to levy a maximum penalty of double tax on goods as per Section 129 of the GST Act, even for errors not involving any tax evasion, during inspection of goods vehicles.

It also asked for the implementation of former State Commissioner of Commercial Taxes TV Somanathan's Circular dated May 31, 2019.

"The circular issued in 2019 by Somanathan, who is at present the union finance secretary, gave detailed protocol to be adopted by roving squad officers while intercepting and inspecting goods vehicles.

The chamber pointed out that the circular prescribed lesser penalties for errors other than tax evasion, insisting that innocent taxpayers should not be confronted with unpleasant and unfriendly actions from the department. We demand that this circular be implemented in its entirety.

In the absence of this circular's implementation, tax officials are behaving as tax collectors instead of tax administrators and levying higher penalties against the provisions, the release read.

"Adding insult to injury, the state has now amended the circular. Provisions of levying lesser penalty have been deleted and a maximum penalty of 200 per cent of the tax amount has been prescribed for non-tax evasive error, even when the consignment is accompanied by tax invoice and a valid e-way bill showing sufferance of tax," the chamber president added.

The industry body also asked for the formation of a State GST council comprising trade representatives.  (KNN Bureau)