Gujarat: Surat CA Association Accuses SGST Officials Of ‘Undue Gratification’ & Harassment Tactics

The Chartered Accountants Association, Surat (CAAS) has launched a scathing attack on the State Goods and Service Tax (SGST) department, accusing its officials of resorting to “unscrupulous practices” and “harassment” to extract undue gratification from stakeholders.

In a strongly worded letter addressed to the Commissioner of State Tax (Gujarat) and CBIC chairman, CAAS president Rasesh Shah and vice-president Hardik Kakadiya highlighted a series of alleged unethical practices employed by SGST officials.

Letter highlighted GST refund system

The letter lauded the automated GST refund system via ICEGATE for export-related duty payments, calling it a positive development for businesses. However, it painted a starkly different picture for manually processed refunds. CAAS alleged that these refunds are often contingent on “gratification” ranging from 1% to 1.5% of the refund amount. The association further claimed that taxpayers, faced with large accumulated refunds, are hesitant to challenge the corrupt practices due to the fear of complications and delays.

CAAS detailed various harassment tactics reportedly employed by SGST officials. These included summoning taxpayers, consultants, lawyers, CAs, and their employees for unnecessary in-person meetings, effectively holding their work hostage.

The association also highlighted the particularly troubling practice of resurrecting closed businesses. In cases where businesses have shut down, wound up their accounts, and applied for registration cancellation, SGST officials allegedly reject the applications, leading to the re-activation of all associated liabilities and penalties.

Irregularities found in SGST & CGST practices

CAAS president Rasesh Shah further emphasized the contrast between the alleged practices in SGST and the sister department, Central Goods and Service Tax (CGST). “In the CGST department, no such harassment is faced by the stakeholders,” he stated, adding that CAAS possesses a list of “unscrupulous officers” involved in these unethical practices and is willing to share it with the authorities.

The letter concluded by urging the Commissioner of State Tax to take immediate action to address the allegations and conduct a thorough investigation into the reported misconduct. CAAS demanded strict disciplinary action against the officials involved and a complete overhaul of the system to ensure transparency and eliminate opportunities for corruption. This serious accusation by a prominent professional association has cast a shadow over the SGST department in Surat.

Source: The Free Press Journal