Know how a small GST mistake resulted in years of mess for a Gujarati Businessman

GST DOST's BLOG

Know how a small GST mistake resulted in years of mess for a Gujarati Businessman
Sep, 2020
By Aditya Dhanania

We get to hear a lot of uncustomary stories regarding GST almost every other day, but this one particularly caught my attention. Sometimes we have no idea what life unfolds on the next turn, and small mistakes or things can turn big real quick.

Similarly, in this story, something which started small turned into an ugly experience for a businessman. The best thing about this piece is that we have made sure that this does not happen with you, so keep reading!

The story is about an old textile manufacturer from Gujarat who was summoned by the GST department on suspicion of tax evasion. The old man didn't think of going as per the summons owing to the mess created by the coronavirus pandemic.

Strict Government guidelines also restricted older adults to go outside homes, and he felt the need to follow the guidelines. He submitted a plea after taking advice from his Doctor, but the investigating officer turned a deaf ear to all his pleas and instead issued an Intimation in DRC 01A directing him to pay a hefty tax along with interest and penalty. Not only this but the order also provisionally attached his factory and house to pressurise the businessman to pay the fines.

With no solution in sight, the businessman petitioned the Honourable Gujarat High Court and explained his case. With all the precise information, the Learned Judge quashed the DRC 01A and ordered the investigating officer to hear the older man's side of the story before making a decision.

The biggest problem was that the Learned Judge did not quash the provisional attachment, and now the businessman has to appear before the same officer and explain his case.

What can we guess about the outcome when the old man has to present his case to the same officer whom he had sued a few days ago?

This is an eye-opener for all of us!

We plea to the Government of India to take necessary steps so that things like this can be avoided. Why should an old businessman who followed what his Prime Minister advised be treated like this?

However, to make sure you don't have to face any such problems in your life, we would like to advise you always to make sure to attend the hearings in case you receive a summon for any case, be it GST or any other thing.

Summoning by the GST Department is a serious affair but with proper records and maintained accounts, you never have to worry; especially when you have professionals managing your accounts!!!

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Reach blogger DOST Aditya Dhanania at aditya@gstdost.com

 

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