Businessmen have requested intervention from Chief Minister Bhagwant Mann and Finance Minister Harpal Singh Cheema due to their angst over the show-cause notices being issued by the State Goods and Services Tax (SGST) department for Value Added Tax (VAT) assessments dating back to the financial year 2016–17.
To shield them from penalties, businessmen have encouraged the government to implement a one-time settlement (OTS) programme. The businessmen have also requested that only a small cost be charged under OTS for the pending evaluations.
The majority of the city’s industrialists lament their inability to provide the necessary C-forms for FY 2016–17, which could result in severe fines from the department. In this context, the CM has also received a letter from the Fastener Suppliers’ Association of Ludhiana imploring him to intervene.
Association president Rajkumar Singla said, “Thousands of show cause notices under sections 60 and 61 of Punjab VAT Act have been issued to industrialists of Ludhiana by the SGST department. As per these notices, we are being asked to appear before senior officials along with a huge cache of documents including books of accounts, original purchase invoices, sale invoices and declaration forms etc. In case we fail to do so, a huge penalty and tax will be imposed on us.”
One of the city’s businessmen urged that the highest ceiling for VAT assessment of all pending years under the OTS be maintained at Rs 2,500 for micro, small, and medium firms.
VAT assessment and show cause notices are a hurdle because 90% of them do not have the statutory forms, especially C-forms pertaining to FY 2016-17. As a result, no one will be able to complete their VAT assessments and as a result will have to face action from the SGST department.
Thus the association representative urged the finance minister and the CM to introduce an unconditional OTS scheme for settling all VAT assessment cases on an urgent basis, or else businessmen will suffer huge financial blow.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
