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Indore’s MFD association has approached the GST Commissioner in Bhopal to seek GST relaxation for MFDs.
This has come after the GST department sent summons to 46 MFDs and put 186 MFDs in the list of defaulters. These summons and notices have been sent to MFDs who did not earn Rs.20 lakh, said Rajesh Kulwal, President of Indore MFD association.
Overall, there are four categories of MFDs who received summons and notices:
- MFDs who earn less than Rs.20 lakh
- MFDs who did not take GST registration number despite crossing the threshold limit of Rs.20 lakh due to incorrect calculation of their gross income
- MFDs who took GST registration number but did not pay GST
- MFDs who took GST registration number but stopped paying it when their income reduced to less than Rs.20 lakh
Kulwal said that while the association sought complete relaxation for MFDs who earn less than Rs.20 lakh as this category is exempted from paying GST, the association requested the GST commissioner to impose section 73 instead of section 74 in all other cases.
Section 73 is determination of tax not paid or short paid or erroneously refunded or input credit wrongly availed or utilized for any reason other than fraud or any wilful mis-statement or suppression of facts. However, the final discretion to give such a relaxation stays with the officer.
On the other hand, the section 74 of the GST act means you have wilfully defaulted on GST payment.
Kulwal said that the GST commissioner has assured them that he will look into the matter and consider providing some relief in some genuine cases.
