In wake of recent raids by GST department on the furnace industrialists, different associations representing the industry, have once again upped the ante against department and have warned of a nationwide protest if the actions alleging that a lot of actions are being taken against businessmen having no direct or indirect link with evasion.

In a statement issued on Wednesday, one of the prominent industrialist from the furnace sector, KK Garg who also is the President of the Induction Furnace Association of North India said, “Furnace industry receives raw material from Pan India traders, through E-way bills approved by government portal and we pay even single penny of GST due on that right at the moment of purchasing it. Sometimes some suppliers out of these shut down their firms or do not pay the GST to the government and instead of taking strict action against them and making them pay their dues, GST officials start sending notices to us. Besides this we are also penalised and in some cases even more harsher treatment is meted out to us which amounts to sheer harassment for the genuine businessmen who have no link with tax evasion or bogus billing”

Garg also added, “Besides harassment, disrepute such actions by GST departments also causes us financial losses because our businesses suffer heavily. This issue is not restricted to Punjab alone but it is happening everywhere in the country and from past four years we have been struggling to make the government, departments understand that when there is no mechanism with us to check about the tax evaders how can we be punished. In wake of recent rise in such incidents, we have decided to take up this issue during national level industry conclave taking place on September 19^th and 20^th in Maharashtra where furnace industrialists from all over India will be present. A protest march will be organised on the occasion against the flaws in the GST system and unjustified actions against the innocent businessmen, due to which furnace factories are dying a slow death”

Garg also opined that government should immediately reduce the GST on scrap from 18 to 5 percent after which there will be no scope for anyone to evade tax moreover this will increase the government revenue.

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