- GST license suspension caused business disruption despite verification visit by officials
- Business added Blinkit warehouse as APOB, leading to GST verification call from Varanasi
- GST authorities suspended licence for unoccupied location, affecting company operations
At a time when the Indian government has announced rationalisation of the Goods and Services Tax (GST) slab structure to provide relief to the consumers, businesses continue to face hardships. In a now-viral Reddit post, a user shared how doing business feels like punishment after their GST license was suspended.
"A little long post but I'm angry and I had to let it out. So, the last 2 weeks have been hell. Our GST got suspended. Why? Somewhat because of Blinkit and more because of a GST official," the user wrote in the r/StartUpIndia subreddit.
"We send inventory to Blinkit. To do that, we had to add their warehouse as an APOB (Additional Place of Business). Now we get a call from Varanasi for verification. We said it's for Blinkit and we don't have any office there. After much discussion (with our CA also involved), we said give us two days and we'll be there."
However, the next day, the GST license was suspended with authorities stating that no one was found at the location. The suspension happened despite the GST officer visiting the "actual unit" and verifying everything.
"If they had any doubt, they could have rejected that particular location. why suspend GST which is like shutting down business Then started the circus — running to the GST office, DM, CDO. Carrying files, papers, just to prove that our company is real. We're paying taxes. And still treated like frauds."
The individual questioned why it was so hard to run a business in the country despite having noble intentions.
"This is why India ranks low in “ease of doing business.” Not because we don't work hard, but because the system makes you feel like a criminal for trying."
See the viral post here:
Doing business in India feels like punishment
byu/Various-Bullfrog-944 inStartUpIndia
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'Same thing happened'
As the post went viral, a section of social media users sympathised with the businessman, whilst others shared similar experiences they had faced.
"On ground corruption and NOC delays is the biggest reasons Make in India hasn't fully taken off," said one user while another added: "Sometimes I feel GST on the grass root level has just 'organized' the bribes and 'touts' industry."
A third commented: "Same thing happened to me, they couldn't find my office. But I went to GST office for two straight days (since on 1st day I came after lunch ) but on the second day met the officer, and he cleared my file without asking for any favour."
A fourth said: "You are far braver than I am. I gave up business at the very first step when my GST registration requests kept getting rejected for stupid reason."
