Agrofood Chamber of Commerce and Business has urged the Tamil Nadu authorities to withdraw the latest State GST amendments that give provisions to the Roving Squad Officers to levy a heavy penalty for non-tax evasion errors throughout the inspection.
The Chamber strongly objects to the amendments dated January 10, 2023, issued by the Tamilnadu Business Taxes Division by means of its Round bearing No.10/2019 dated Could 31, 2019.
The brand new guidelines give directions to the Roving Squad to levy the utmost penalty of double the tax quantity, throughout the inspection of products automobiles in transit, even for errors not involving any tax evasion, as per Part 129 of the GST Act, S Rethinavelu, President of the Chamber stated in an announcement.
Levying of lesser penalty has been deleted and the brand new provisions prescribe for the levy of 200 per cent of the tax quantity even for the consignment accompanied by tax bill and a sound e-way invoice displaying sufferance of tax, wherein a non-tax evasion error is seen.
Beneath Central GST Round solely ₹500 has been prescribed as a penalty for non-tax evasion. The amendments are towards the precept of GST viz., One Nation; One Tax,” he identified.
The brand new amendments additionally prescribe the levy of penalty even in a case, the place the godown wherein the products are delivered is a registered godown of the tax payer, however inadvertently omitted to say the handle within the e-way invoice. The Roving Squad officers are supplied with a cellular app to log in to the GSTN portal, whereby the main points of taxpayers’ registered godowns can be found.
“We marvel, how a penalty could be levied in such circumstances, which is towards the provisions of GST Act Guidelines,” he stated.
The Chamber indicated that the levy of such heavy penalties will pose a risk to the survival of commerce and trade and has requested the State authorities to withdraw the brand new amendments and implement TV Somanathan’s Round, which is giving protocols intimately to the Roving Squad to be adopted throughout inspection of products automobiles and prescribing a lesser penalty for errors with none tax evasion, in letter and spirit.
It has additionally requested the intervention of the Chief Minister on this matter and kind a State GST Council with commerce representatives to debate such points earlier than implementation.