Stop door-to-door inspections by GST Dept: Beopar Mandal to govt

The Punjab Pradesh Beopar Mandal, sore over the door-to-door inspections at shops by the GST Department here have written to the Punjab Finance Minister and Krishan Kumar, Financial Commissioner, Punjab, to halt the inspections, especially during the ongoing festival season.

Sunil Mehra and Piara Lal Seth, general secretary and president of the mandal, respectively, in a letter written to the minister have requested that shopkeepers were currently facing tough times due to the ongoing door-to-door checks conducted by the Excise and Taxation Department.

They said while they understood the need for regulatory compliance and revenue assurance, the current approach had resulted in considerable disruption in the market.

Mehra said the past four months had witnessed a significant slowdown in trade due to various economic factors. Businesses, especially small and medium-sized enterprises (MSMEs), were struggling to maintain sales volumes and the slowdown had placed an immense burden on their ability to survive in the current climate. Besides, the increasing trend of consumers shifting to online platforms for purchasing goods had further reduced the footfall in physical stores. Many traditional businesses were grappling with adapting to this change, which had resulted in shrinking revenues.

“The door-to-door inspections only add to the uncertainty, discouraging even small numbers of customers who visit physical markets,” Mehra said.

Seth pointed out that the imposition of the 43B(h) Clause of the Income Tax Act had restricted buyers from purchasing in bulk from MSMEs. This regulation had curtailed the volume of trade that small businesses could conduct, limiting their ability to meet needs of the market. The restrictions create additional challenges for businesses already reeling under the weight of economic pressures.

The members of the mandal also brought to the notice about the ongoing farmers’ strike that has led to the closure of the Shambu border, further crippling supply chains in the state. The blockade has severely impacted trade activities, as many businesses rely on supply routes that pass through this border, resulting in delayed deliveries and stock shortages, they said, adding that the presence of GST officers in markets, stopping customers to enquire about their purchases and subsequently visiting shops for inspections, had caused panic among both buyers and sellers. The practice was proving to be counterproductive, as it discourages customers from shopping freely, further aggravating the slowdown in market activities.