Industrial associations in Coimbatore have demanded the immediate release of pending refunds to micro and small enterprises without penalties or bribery. They alleged that officials from the commercial taxes department are seeking a 10% commission through auditors to clear long-pending SGST penalty refunds.
Allegations of Bribery
The Federation of Coimbatore Industrial Associations (FOCIA) coordinator J James stated that over the past two days, applicants who had sought refunds of refundable SGST penalty amounts pending for extended periods were being called in and allegedly asked to pay 10% as a bribe via their auditors. It was claimed that the pending files would be cleared immediately upon payment.
James highlighted that entrepreneurs who had paid penalties despite no wrongdoing were forced to wait for years for refunds. The alleged demand for an additional 10% was adding to the burden on small businesses.
Call for Government Intervention
He urged Chief Minister Joseph Vijay to intervene and ensure that refunds are issued without enabling bribery expectations and without imposing any additional penalties. James alleged that officials warn applicants that questioning the process could lead to penalties under other sections of the law.
During goods movement checks through patrol vehicles, even minor billing errors or a single-word mistake could result in on-the-spot penalties of up to 200%, which are later refundable after submission of documents, he flagged.
Impact on Small Entrepreneurs
With refunds already delayed for up to a year in many cases, the alleged bribe demand to release pending amounts is pushing small entrepreneurs into stress, James said. He called on the state government to ensure that the refund order issued after the new government assumed office reaches beneficiaries in full.
The associations have urged authorities to act against the alleged practice and ensure that refunds are processed transparently.
