AI Diligence or Disruption? GST notices of ₹5-10 issued to small traders; panel takes notice
In an ideal scenario, a mechanism should exist to allow traders to reconcile these minuscule discrepancies swiftly. The imposition of fines over minor discrepancies, such as a ₹1 variance in GST payments, appears overly punitive.
LUCKNOW Small traders in Lucknow are expressing concerns over the Goods and Services Tax (GST) department’s use of Artificial Intelligence (AI) to issue recovery notices for small amounts, often as low as ₹5-10. This issue came to light during the recent meeting of the GST Grievance Redressal Committee in the city.
Member of the Grievance Redressal Committee, Manish Khemka, drew the officials’ attention to the peculiar situation where traders found themselves on the receiving end of GST dues notices, often amounting to a mere ₹5-10, due to the intervention of Artificial Intelligence. In response, traders, out of sheer frustration, have expended considerable sums to personally visit government offices with the requisite documentation in a bid to rectify these notices.
In an ideal scenario, a mechanism should exist to allow traders to reconcile these minuscule discrepancies swiftly. The imposition of fines over minor discrepancies, such as a ₹1 variance in GST payments, appears overly punitive.
Assuaging concerns, commissioner of trade tax, Ministhy S, said, “Directives have already been issued to address this matter, ensuring taxpayers do not suffer undue inconvenience. Any complaints of unwarranted harassment of traders by authorities will be met with stern action against the responsible officials.”
Khemka further urged officials to expedite the establishment of a GST Tribunal in Uttar Pradesh. It is worth noting that the central government recently announced plans to establish 31 benches of the Appellate Tribunal in all states and union territories, aimed at resolving GST-related disputes.
Officials also took this opportunity to encourage traders to register under the GST scheme, emphasising the benefits of the Chief Minister Traders Accident Insurance Scheme currently operational in the state. Under this scheme, in the unfortunate event of the demise of a GST-registered businessman due to an accident, dependents would receive compensation amounting to ₹10 lakh, demonstrating the government’s commitment to safeguarding the interests of traders.
