FAIVM Urges Finance Minister to address GST Notice Crisis

Ahmedabad : The Federation of All India Vyapar Mandal (FAIVM), the apex body representing trade associations across India, has taken a decisive step to address a growing crisis in the business community. FAIVM has formally requested a meeting with Union Finance Minister Nirmala Sitharaman to engage all industry stakeholders in finding a solution to the mounting issue of GST (Goods and Services Tax) notices.

The notices, which have sent shockwaves throughout the business community, pertain to the fiscal year 2018 and are primarily related to discrepancies in GST input tax credit, credit reversals, and ineligible credit claims. FAIVM contends that these notices are a consequence of the initial lack of clarity, numerous notifications, and confusion stemming from incomplete GST rules, which resulted in clerical and technical errors by businesses. Many of these errors, FAIVM asserts, are reconciliation matters that can be resolved with the right mechanisms in place.

However, the current system, heavily reliant on computer entry-based checks, lacks the flexibility for businesses to engage in self-online reconciliation. This has led to the automatic generation of a vast number of unfair tax demands, causing significant frustration among taxpayers. FAIVM asserts that the responsibility for these challenges lies, in part, with the complexities and ambiguities of the GST Act and Rules themselves.

Another point of contention raised by FAIVM is the fairness of issuing tax notices after a significant five-year delay. The faceless digitalization of the GSTN (Goods and Services Tax Network) without the involvement of human intervention has compounded these problems. Taxpayers find it increasingly challenging to resolve their issues, and even departmental officers, despite recognizing errors, often feel powerless due to the system’s limitations on online error correction.

Jayendra Tanna, National President of FAIVM, commented on the situation, stating, “The absence of human application has left the taxpayers bewildered. There is an urgent need to review the system as a whole to allow human involvement alongside the faceless system to regain the confidence of taxpayers.”

Tanna continued, “We have requested the Finance Minister to convene an immediate meeting with all stakeholders to find a solution that genuinely facilitates ease of doing business. It’s crucial to address the mounting concerns of businesses and restore trust in the GST system. This meeting will pave the way for constructive dialogue and collaborative problem-solving.”