Union Finance Minister Nirmala Sitharaman has responded to a Linkedin post that alleged fraudulent activities in the GST registration process. A post, shared by Vinod Gupta, founder and director of VG Learning Destination showing his frustration over delays in getting his GST registration has gone viral on social media.
Gupta claimed in the post that after failing to get his work done via an usual process, he was now considering paying a bribe and "Committing a crime."
His post went viral, prompting a detailed response from the Central Board of Indirect Taxes and Customs (CBIC)
Gupta claimed that he hasn't received the GST number even though he applied for it 20 days ago. He wrote, "Tomorrow I will commit a crime. Giving and taking bribery: both are crimes. I applied for a GST registration number for a firm in which my wife and daughter are partners 20 days ago."
"Objections started coming in. Till today, the number has not been allotted. So, I've decided to get the GST number tomorrow. I know I will get it after committing the crime," he added.
Tax Compliance and Litigation Expert Abhishek Raja Ram shared the post on micro-blogging website X and tagged the Central Board of Indirect Taxes and Customs (CBIC) and alleged corruption happening in the GST registration process. He also called out the officials handling the department and urged the top management to take control.
"CBIC has no idea of the ground reality of corruption in GST Registrations. Their Executive Officers are so corrupt that even VG Sir has to vent out his frustration. Better top-level Officers take control of Registrations to save the country from corruption," he said in his post.
CBIC promptly respond to his post. The board said that Mr Gupta filed an application process on May 26 and was assigned to the Delhi State GST jurisdiction and not the Central GST authorities.
The board also stated that the application was processed immediately; however, a query was raised because a designation was missing on the rent agreement. This was informed to the applicant; however, there has been no response from his side yet.
Refuting the allegations, CBIC also appealed Raja Ram not to circulate wrong information on social media without knowing the facts.
What Nirmala Sitharaman Said?
Finance Minister Nirmala Sitharaman responded to CIBC's post on X. "It is our responsibility to serve taxpayers. But while doing that, we must be honest and transparent, because that's how we earn their trust. I believe the GST Board and officers will continue to be careful and quick in responding to people's issues," she said.
